FCC Comr. Abernathy stressed role that wireless spectrum plays in homeland security, in speech Tues. to Conference on Homeland Defense in Washington. She cited “serious interference issues” that exist between public safety and commercial wireless operators in 800 MHz band. Recent spectrum swap proposal floated at agency by Nextel (CD Nov 23 p1) offers “one possible solution,” although Abernathy said she didn’t necessarily back that plan: “It is my hope that the FCC can promptly generate an NPRM that looks at the interference issues at 800 and outlines various possible solutions… This is particularly important in that consolidation of public safety licensees in the 800 MHz band also offers the potential to expand on our ongoing efforts to create some national interoperability bands and provides additional spectrum for public safety.” At press breakfast earlier Mon., Abernathy said she expected that NPRM would examine broader set of potential solutions than one proposed by Nextel. Nextel proposal would realign frequencies at 700, 800 and 900 MHz, giving public safety users access to 20 MHz of contiguous spectrum in lower 800 MHz band. While public safety officials have given warm reception to plan, private wireless users have expressed concern over issues such as how they would be compensated for relocation. Other questions have involved giving Nextel spectrum, under plan in which it would pay up to $500 million for public safety users to relocate but wouldn’t pay for spectrum they were receiving. Instead, plan would involve swap for bands they are giving up at 800 MHz and elsewhere. “Significant concerns have been raised about the idea of ‘compensatory’ spectrum being provided from the 2 GHz MSS bands, and I will need to look more closely at the record regarding our approach to incumbent private wireless operators in the band, particularly that spectrum used by critical infrastructure licensees,” Abernathy said: “But the bottom line is that the interference issues at 800 MHz need to be solved, and Nextel, to its credit, offered one possible solution.” Under its plan, Nextel would swap 4 MHz in 700 MHz band, 8 MHz of specialized mobile radio spectrum at 800 MHz and 4 MHz in 900 MHz band. Nextel then would receive 6 MHz in upper 800 MHz band and 10 MHz in 2.1 GHz band. As for 24 MHz set aside for public safety in Ch. 60-69 spectrum, Abernathy said FCC faced constrained options for expediting exit of analog TV broadcasters out of that band: “Although I understand the concerns raised about paying broadcasters to move, I continue to believe that, based on our existing statutory authority and the limited options available, a policy that promotes voluntary commercial transactions to clear this band is the best approach.” She also said proposal for globally identified public safety bands was on agenda at 2003 World Radio Conference (WRC). “If the WRC is to designate international public safety bands, I believe it is essential that the 60-69 band be at least one of the ones identified.” Abernathy said she supported “flexible approach” to pending waiver requests at FCC from VoiceStream and Verizon Wireless on wireless priority access service (PAS). Agency may need to take another look at its PAS rules if waiver requests reflect potential shortcomings, she said. “These are difficult issues,” she said, citing questions such as how priority access interacted with Enhanced 911. “And what other spectrum management issues are implicated? We should not keep rules on the books if they don’t make sense and if we receive a constant flow of waiver requests that may indicate a need for changes.” Carriers and govt. users still are “feeling their way” on best approach to PAS, she said.
House Commerce Committee Chmn. Tauzin (R-La.) and Judiciary Committee Chmn. Sensenbrenner (R-Wis.) were meeting Tues. afternoon with House leadership to present compromise version of data deregulation legislation (HR-1542), House Majority Leader Armey (R-Tex.) said in press briefing. He credited Tauzin for hard work on moving version of bill referred to full House that would loosen regulations on Bell company provision of Internet backbone and high-speed Internet services.
FCC Common Carrier Bureau approved part of Verizon’s request to implement certain changes to carrier-to-carrier performance measurements that company reports to Commission pursuant to Bell Atlantic/GTE merger order. In letter to Jeff Ward, Verizon senior vp-regulatory compliance, Commission said it already had approved many of company’s proposed changes. For example, Verizon requested exclusion be added for customer-caused delays when reporting on order confirmation testing and for clarification on when hot cut was considered completed or missed.
House Telecom Subcommittee Chmn. Upton (R-Mich.) blasted negotiators of proposed NextWave settlement for asking Congress “to clean up a judicial train wreck.” Proposed deal would require bankrupt NextWave to return wireless C- and F- block licenses in exchange for nearly $6 billion after taxes, while govt. would gain $10 billion (CD Nov 19 p1) from spectrum that was re-auctioned earlier this year. Although Upton agreed with supporters of settlement that “taxpayers have been starved of proceeds” from auctions, he said he was “not happy that NextWave gets $6 billion from this.” He said he planned to introduce legislation to prevent future conflicts between spectrum policy and bankruptcy laws, although he didn’t disclose details. In meantime, he said, he not only hopes Supreme Court will review the case but will overturn D.C. Circuit decision that ruled for NextWave.
Wireless priority access service (PAS) didn’t start Mon. in Washington and N.Y. as planned under contract proposal that National Communications System (NCS) still is negotiating, sources said. VoiceStream and Verizon Wireless have waiver requests pending before FCC on guidelines for deploying wireless PAS. NCS earlier in fall had issued request for immediately available NCS capability for Washington, N.Y. and Salt Lake City, saying last month that Verizon would be tasked to provide short-term capability. VoiceStream also said it was in discussions with NCS and that its understanding was that contract award to Verizon wouldn’t be exclusive (CD Nov 23 p6). Of pending waiver requests, FCC spokeswoman said Tues. that “the matter is still under review.” One source said talks between carriers and govt. had reached impasse. Verizon Wireless spokesman declined to speculate on resolving negotiations, but said agreement with NCS must be reached and waiver from FCC received before initial PAS system could be implemented. In its request for partial waiver of FCC’s PAS guidelines, GSM carrier VoiceStream said it could roll out PAS capability that lined up priority call for next-available slot in system when radio or network resources were busy (CD Nov 30 p11). Last week, NCS filed in support of VoiceStream’s waiver request, similar to filing that backed Verizon’s request. In Dec. 6 filing, NCS said FCC’s PAS rules tracked closely with telecom services priority (TSP) system, which NCS also administers. “Handbooks and instructional material developed for TSP are being used as guides for development of wireless priority processes and procedures to ensure only qualified NS/EP [national security/emergency personnel] users are assigned priorities,” NCS told FCC. “While at this time there are no specially designated ‘authorizing agents’ to request priorities as contemplated by the rules, the NCS is working to identify them.” NCS said FCC guidelines also allowed it to assign priorities directly at request of users of PAS. NCS said it had contacted federal, state and local organization with national security and emergency duties in cities where immediate PAS system was in works and now was receiving requests for service.
R.I. PUC followed model set by N.Y. and Mass. regulators as it adopted wholesale performance assurance program for Verizon that takes effect when telco begins providing long distance. PUC (Case 3195) followed Verizon suggestion and adopted overall performance measurement and penalty structure of N.Y./Mass program but modified specific metrics to reflect R.I. marketplace. For example, PUC added 2 billing metrics including percentage of billing-dispute claims acknowledged within 48 hours of receipt and percentage of CLEC billing disputes resolved within 28 days. They are similar to ones adopted for Verizon in Pa. PUC also doubled penalty for Verizon’s missing UNE flow-through target, saying that was metric Verizon consistently had been missing. Penalties for performance failures will be paid as bill credits to CLECs. PUC required Verizon to file monthly wholesale service performance reports. Agency also said if Verizon made changes in performance assurance plans in N.Y. or Mass., it must incorporate same changes in its R.I. plan within 10 days. Plan will begin month after Verizon receives FCC interLATA long distance approval. PUC didn’t set performance standards for special service circuits but said it would open separate docket to consider separate guidelines.
FCC’s attribution rules are inexorably linked to questions about ownership limits and agency should take “a fresh look” at those rules and consider changing them, NCTA Pres. Robert Sachs told reporters Tues. Outlining NCTA’s regulatory strategy for coming year, Sachs said his group would ask Commission to reconsider whether company that held only 5% stake in another actually should be considered as having control of 2nd company. Sachs said attribution rules should be reconsidered across board for cable, broadcast, other media. He said it was unfair that FCC, when looking to limit ownership, didn’t take into account fact that small investments in other media companies didn’t amount to control. “What we want are attribution rules, bottom line, which establish that a company is credited with ownership where it actually controls an entity,” Sachs said. Rules say person or entity has attributable ownership if that person or entity have 5% of voting stock or 33% of combined debt and equity.
Ex-FCC Comr. Gloria Tristani announced Sat. she officially entered U.S. Senate race to run against Sen. Domenici (R-N.M.). Tristani told supporters at rally that she filed statement of candidacy with Federal Election Commission and would seek Democratic nomination to challenge Domenici in general election next year. “Some people say Pete Domenici is unbeatable, especially by a Democrat, Hispanic and a woman,” she told supporters. “I don’t agree.” Tristani, who left FCC in Sept., has been interested in running for statewide office for several years. She is granddaughter of Dennis Chavez, who served in Senate from N.M. from 1931 until his death in 1962, and she held campaign event at Albuquerque recreation center named after her grandfather.
“We must reevaluate the FCC’s media regulations in the context of the current marketplace,” Comr. Martin said Tues. at Media Institute lunch. “Today, we have an astounding array of options,” he said, “hundreds of television channels, thousands of radio stations,” along with various other media into homes. Going back to Federal Radio Commission in 1928, he said many of current regulations were adopted under assumption of a shortage of frequencies. But, Martin said, “while available spectrum [for broadcasting and other services] has grown… that assumption” of spectrum shortage still results in content regulation, licensing rules and ownership restrictions: “I think it is imperative for us to reevaluate the whole landscape [of regulation] to make sure we're taking into account the increasing number of [information] sources that are available today.” In answer to question, Martin said FCC rules should be based on competition, not structural issues. Commission, he said, has “obligation” to make sure its licensees have a stable regulatory environment. Martin didn’t specify any particular rule or regulation he thought should be repealed.
Sinclair Bcst. exercised some improper de facto control over Glencairn Ltd., FCC said, but not enough to justify withholding approval of transfer of station licenses (CD Sept 14 p4). Commission approved Sinclair purchase of 14 TV stations from Sullivan Bcstg. for $1 billion, but said Sinclair was subject to $40,000 forfeiture for exercising undue control over Glencairn stations. Commission approved Sinclair purchase, which had been pending for more than 3 years, only after U.S. Court of Appeals, D.C., in highly unusual action and on its own motion, gave agency 40 days to act or explain to court why it hadn’t (CD 17 p9). Comr. Copps dissented in part, saying “Sinclair has crossed the line” on control issue and forfeiture wasn’t enough penalty because it allowed “Sinclair to run over these lines and to continue its multiple ownership strategy… The assessment of a fine combined with the approval of the transfers at issue is incongruous.” He said transfer applications should be designated for full hearing. Majority said facts of case demonstrated that Glencairn owner “was not in control of Glencairn and passively permitted Sinclair to dictate the terms,” but there was no “intent to deceive” Commission, so there was no need for hearing.