Breaking its month-long silence, NAB came out strongly in opposition to EchoStar’s $26 billion acquisition of DirecTV (CD Oct 30 p1). Announcing expected position, NAB Pres. Edward Fritts said: “This merger would create the world’s largest monopoly video delivery system. EchoStar has a history of challenging congressional mandates, ignoring FCC rules and bad-faith business dealings -- all to the detriment of consumers.” NAB TV Vice Chmn. Michael Fiorile, Dispatch Bcst. Group, will testify against EchoStar at congressional hearings next week (see separate story, this issue).
VoiceStream asked FCC for partial waiver of guidelines for deploying wireless priority access service (PAS) to begin offering PAS on voluntary basis immediately in N.Y., Washington and other cities that VoiceStream serves. Petition filed late Wed. follows up on plans for limited relief that VoiceStream told FCC last week it would seek on PAS rules so that service could be offered to national security and emergency personnel (CD Nov 23 p6). Waiver request follows similar one filed by Verizon Wireless for implementing wireless PAS under agreement that carrier appears to have reached with National Communications System (NCS), which issued request for near-term PAS capability for N.Y., Salt Lake City, Washington. VoiceStream said it believed contract award wouldn’t be exclusive to Verizon. VoiceStream said it had been meeting with NCS and its contractor DynCorp since Sept. 11 to determine what PAS capabilities could be offered using GSM in Washington and N.Y. within 60 days and what could be implemented for near term and by end of 2002 on nationwide basis. VoiceStream told FCC it had revised original PAS solution it had proposed to one that had more features. Carrier said it could roll out PAS capability called Enhanced Multi-Level Precedence and Preemption (eMLPP), which lines up priority call for next- available slot in system when radio or network resources are busy. Seven different priority levels are offered for call set-up and call continuity if wireless call is handed off. VoiceStream said service was subscription-based and wouldn’t require any interaction with it in case of emergency because offering had “always-on” capability. Handsets using eMLPP technology aren’t yet commercially available, although VoiceStream said Sony/Ericsson’s wireless equipment joint venture had indicated it could offer them commercially for GSM operators in U.S. in 60-90 days. “Other mechanisms for allowing a choice of priority levels on a per-call basis that do not require specific eMLPP-capable handsets are being explored,” carrier said. VoiceStream asked that waiver stay in effect until such handsets were available commercially or until alternatives for providing choice of priority levels on per-call basis were in place. “Based on discussions between VoiceStream and various government agencies, we anticipate a statement of their support of VoiceStream’s request to be forthcoming, which should further attest to the fact that a limited waiver would serve the public interest,” carrier said. NCS already has submitted filing at FCC supporting Verizon’s waiver petition.
FCC announced Thurs. that parties must refile pleadings that were sent through U.S. mail since Oct. 1 because much of that mail never made it to FCC hq. Once Anthrax concerns arose, Postal Service held much of federal govt. mail without delivering it. Refiling -- and all new filings -- must be done in one of 3 ways, FCC said: (1) Electronically, meaning by fax or e-mail. (2) Overnight delivery service other than U.S. Postal Service to FCC hq. (3) Hand delivery to FCC’s Capitol Heights, Md., location. Refilings must include signed affidavit that filing originally was made on time. They're due 7 calendar days after notice is filed in Federal Register. Pleadings don’t have to be refiled if they originally were: (1) Filed electronically. (2) Hand- delivered to FCC hq Oct. 1-19 or to Capitol Heights location after that. (3) Delivered to FCC hq by overnight services other than U.S. mail. Among pleadings that have to be refiled are petitions for denial and reconsideration, informal requests for action involving pending applications, petitions to amend TV and FM Broadcast Table of Allotments, responsive pleadings.
ANAHEIM -- Attorneys for major operators appeared to have single mantra at Western Cable Show here this week: FCC must provide regulatory certainty if MSOs are to offer more services. Four MSO gen. counsels on panel said their companies were having trouble setting business plans because govt.’s rules were uncertain. They cited questions on classification of high-speed data as either cable or telecom service, digital dual must-carry, ownership caps and pole attachment rates as some of issues pending.
FCC set Dec. 19 deadline for comment on AT&T request for declaratory ruling that LECs must provide exchange access services to point of interface (POI) designated by interexchange companies (IXCs). Commission said AT&T had complained that “an increasing number of LECs have taken the position that they only are required to provide cabling to a demarcation point within an IXC’s POP [point of presence] and that IXCs bear responsibility for any cabling from the demarcation point to the POI.” AT&T argued that such action was “inconsistent” with past industry practice. Ever since Bell system divestiture, LECs have been providing cabling all the way to POI, company told FCC. Replies are due Jan. 2.
Momentum toward U.S. telecom deregulation in recent weeks has become unstoppable, according to policy and investment analysts Precursor Group, but stock market hasn’t yet factored sea change into prices. “In a troubled sector… deregulation remains one of the few positive telecom investment themes with legs,” Precursor CEO Scott Cleland told clients. He cited FCC’s lifting of wireless spectrum caps and deregulatory policy statements by Bush Administration and FCC Chmn. Powell -- all within last month. Playing out within 2-3 years, trend will encourage broadband infrastructure and benefit facilities-based providers against long-distance companies and local resellers, Cleland wrote.
N.J. Gov.-elect James McGreevey (D) said he wanted Board of Public Utilities to delay ruling on Verizon’s Sec. 271 interLATA long distance entry bid until there was significantly more residential local competition in state. McGreevey said he planned to ask outgoing acting Gov. Donald DeFrancesco to request that BPU slow its consideration of Verizon’s compliance with Telecom Act requirements. He said Verizon’s residential local market share of well over 95% indicated there was little residential competition. He said BPU should wait for “a reasonable period of time” to determine whether its recent order for major cuts in Verizon’s unbundled network element (UNE) rates would have desired effect of spurring residential competition. Verizon opposed delay, saying market share was irrelevant to pending 271 case. Telecom Act’s 14-point checklist, Verizon noted, tests whether it has removed barriers to competitive local entry, and BPU’s task under Telecom Act is to decide whether Verizon meets 14 tests in checklist. “There’s no market share test in the checklist,” Verizon stressed. While state’s role in 271 process is advisory, no Bell company in recent years has gone to FCC until after it has received state regulators’ endorsement.
House Commerce Committee leaders held their 2nd go-round with industry leaders involved in digital transition -- along with FCC Chmn. Powell -- and several participants agreed afterward that cable compatibility and copyright issues were major problems delaying transition. As compared with Oct. meeting that went nowhere, we're told, “this time [Congress members] listened and got more information about what the problems are” and how they can be solved, participant said.
Most dial-up Internet users with access to broadband services don’t plan to subscribe to high-speed Internet service until prices drop, nationwide survey for Hart Research and The Winston Group said. Study also said 63% of dial-up users believed Bell-friendly bill sponsored by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.) would increase high-speed Internet prices. Survey was sponsored by Voices for Choices, alliance of local carriers and Internet service providers that compete with Bell companies. “The Bells argue that broadband isn’t being deployed in enough places,” said Steve Ricchetti, co-chmn. of Voices for Choices. He said survey showed “prices will remain too high for consumers… People think by remarkable margins that the price is too high, and that Congress should promote competition first in order to bring down prices.”
Deputy Defense Secy. Paul Wolfowitz asked Commerce Secy. Donald Evans to advocate delay in final regulatory decision on ultra-wideband (UWB) until “at least February.” Expectation of some industry observers had been that UWB could be taken up at FCC’s Dec. 12 agenda meeting, although timing was unclear because NTIA still must submit final input to FCC on rulemaking, sources said. FCC Chmn. Powell told House Appropriations Subcommittee earlier this year that Commission could issue UWB rulemaking by year-end, although he said at time that agency was awaiting final evaluation from govt. on UWB interference issues (CD May 23 p7). In letter to Evans last week, Wolfowitz said DoD’s review of preliminary draft of FCC’s UWB rules “indicates they will not provide adequate protection for GPS and other critical DoD systems… They also raise significant national spectrum management policy issues such as the intentional operation of nonlicensed devices in nationally restricted bands and in internationally designated passive-only bands.” Several sources said item on UWB began circulating on 8th floor at FCC earlier this week.