Gemstar-TV Guide asked FCC to reconsider its decision to allow Time Warner to strip Gemstar’s electronic programming guide from its cable systems, Gemstar spokeswoman said. FCC decided in Dec. that Gemstar’s service didn’t qualify for must-carry status (CD Dec 7 p3). Spokeswoman said Gemstar wanted to go on record with its objections to FCC’s findings.
Extent to which CES is “largest show ever” for consumer electronics “says a lot about the state of this industry,” FCC Comr. Abernathy told us from Las Vegas show late Tues. Among stops that Abernathy said she had made on show floor was to view offerings of rivals XM Satellite Radio and Sirius Satellite Radio, including in-car installations of XM and planned content of Sirius. Abernathy acknowledged that one outstanding regulatory issue for industry is question of terrestrial repeaters. FCC granted XM and Sirius special temporary authority last fall to use terrestrial repeaters in 2332.5-2345 MHz band. “We will ultimately have to come out with a decision about what our final rules will be,” Abernathy said, saying Commission will build further record on interference concerns as part of comments that will be solicited in public notice. “I'm certainly aware of the concerns about interference,” she said. “We are developing a record.” Wireless home networking devices using unlicensed spectrum were also part of what Abernathy said she viewed at CES. Variety of offerings using digital technology to deliver products by wireless such as music and videos over broadband underscore “importance of unlicensed devices as a vehicle for getting new products and services to consumers,” she said. Asked about concerns expressed by some that rising number of Part 15 devices increased potential interference in that band, Abernathy said: “What will become more important to us is to engage and monitor these concerns about interference potential.” She said she was heartened by multiple platforms to home on display at CES, including DirecTV, cable broadband, wireless offerings. “I'm pleased to see the amount of competition that is going on,” she said.
N.J. Board of Public Utilities (BPU) voted 2-0 to endorse Verizon interLATA long distance entry, even though one member was unhappy company forced agency action by filing at FCC before BPU had rendered its verdict. FCC deadline for state to file its comment is Jan. 13. BPU gave its unconditional endorsement despite complaints from CLECs and state consumer watchdogs during 2-year investigation that state’s residential local market wasn’t competitive. BPU Comr. Frederick Butler voted to endorse Verizon Sec. 271 bid, but criticized carrier for “forcing us to render a decision” by filing with FCC before state agency could act. He said Verizon’s tactic “irreparably damaged” its reputation among state’s consumers. BPU Chmn. Connie Murphy cast 2nd vote in favor of Verizon. Comr. Carol Murphy recused herself. BPU has 2 vacancies, which incoming new Gov. James McGreevey (D) is expected to fill this year. New gov. had urged BPU to delay action pending further review of record. AT&T called Verizon’s tactic of going to FCC and forcing BPU into making decision “astonishing and outrageous.”
N.Y. PSC ruled that setting up citizen advisory committee to review community needs and interests for issuing franchise for competitive cable provider no longer was necessary because cable service now was available to more than 95% of state’s population. PSC rules requiring advisory committee, preparation of final report by committee and adoption of specific request for proposals by town board for competitive cable franchise were adopted when only small minority of municipalities were served by cable companies, agency said. Saying general policy of FCC and PSC was to facilitate competition in delivery of multichannel video programming, PSC said timing of decision to enter market “may be a critical factor in whether competition will exist at all and, if so, whether a competitor will survive.” Rules that result in “extensive review” and “protracted period of time” for completion of franchising process may deter competitive entry rather and promote it. Granting waiver of rules sought by Town of Goshen, PSC said requirement of public notice of hearing at which competitive franchise might be considered would ensure public participation in any final decision by town board.
FCC asked for comments on petition filed by Adventure Bound Outdoors -- carried on Outdoor Channel, FamilyNet and 12 local TV stations -- seeking exemption to closed- captioning rules. Also seeking exemption is USA Bcstg., which owns 13 full-power UHF TV stations that carry electronic retail programming and plan to change format to provide original and local programming. Both say rules pose undue burden. Comments are due Feb.8, replies 20 days later.
FCC issued protective order to EchoStar, GM and Hughes Electronics related to transfer of licenses for proposed merger Wed. Under order, one copy of each document that submitting party claims is confidential or proprietary must be delivered in person to Marcia Glauberman or Lina Senecal, Policy & Rules Div., FCC Cable Services Bureau.
Northpoint is denying reports FCC is close to ordering auction for satellite spectrum that start-up terrestrial company wants to use for proposed broadband service. Sources believe Commission is “close, but still weeks away” from making final decision, but is leaning heavily toward making Northpoint and other terrestrial companies bid for spectrum. Northpoint CEO Sophia Collier told us her company wouldn’t participate in spectrum auction and would “seek remedies in court” if FCC ordered auction. However, she said “it’s premature to speculate” on FCC decision. With EchoStar acquisition of Hughes before it, Commission is working diligently to “create a new cable competitor as soon as possible,” Collier said: “Things have changed dramatically because of the merger.”
Sprint PCS told FCC in Jan. 8 ex parte filing that even if Commission had lingering doubts about permanent forbearance of local number portability (LNP) mandate for wireless carriers, it at least should extend deadline until after number pooling was in place. Verizon Wireless in July had submitted forbearance petition for LNP requirements and Sprint PCS had urged agency to make decision by end of 2001. FCC rules require commercial mobile radio service carriers (CMRS) to support service provider LNP in top 100 metro areas by Nov. 24. That’s same deadline for when number pooling requirements kick in for wireless carriers. “It is critically important that CMRS carriers begin pooling in November 2002,” Sprint PCS said. “By contrast, there is no pressing need that LNP be implemented on that or any other date.” This year, wireless carriers also must put resources into implementation of Enhanced 911, Communications Assistance Act for Law Enforcement, TTY and other requirements, Sprint said. “Sprint PCS submits that CMRS carriers are being asked to do too much in the same time frame,” carrier said: “Again, the integrity of CMRS networks is being placed in jeopardy.” Sprint recommended that FCC: (1) Forbear from applying LNP mandate. (2) “Temporarily forbear for 3 years” if market conditions change, “reexamining the need for the LNP mandate beginning on the second anniversary of the temporary forbearance order.” Sprint said that alternative would let CMRS carriers focus on implementation of number pooling. “It will permit CMRS carriers to redivert capital from LNP implementation to expanding coverage and improving service quality [additional cell sites] and to deploying 3G networks and services -- the features that customers are demanding,” carrier said.
Post-Newsweek Stations said it signed 10-year affiliation agreements, through 2011, with NBC TV Network for WDIV (Ch. 4) Detroit and KPRC-TV (Ch. 2) Houston. Terms -- such as whether NBC will pay compensation -- weren’t announced. Post-Newsweek CEO Alan Frank is former NBC affiliates’ chmn. and is current chmn. of Network Affiliated Stations Alliance, which has accused Big 4 TV networks of improper practices in request for FCC investigation (CD Aug 24 p3).
In yet another request for reconsideration of FCC’s MAG order (CD Jan 8 p6), group of competitive telcos added different view of what’s wrong with access charge reform plan for rate-of-return telephone companies. Rural Consumer Choice Coalition (RCCC) -- AT&T, General Communications Inc. and Western Wireless -- said overall MAG order was “strong achievement” but asked FCC to deal with 4 things: (1) Failure to adopt “explicit, portable and competitively neutral universal service support for high interstate switching and transport costs.” (2) Assign part of transport interconnection charge (TIC) costs to local switching. (3) Not address “information surcharge,” which group said should be recovered through common line elements. (4) Failure to adopt “cost-causative recovery for retail marketing expenses,” which RCCC said might have been due to erroneous reading of FCC’s rules.