Justice Dept., ending what FCC Chmn. Powell called “a long and tortuous event,” signed settlement agreement Tues. on NextWave’s disputed PCS licenses. Final govt. signatures were affixed to settlement after Justice ratified agreement, which was unveiled earlier this month (CD Nov. 19 p3). Under settlement, which still faces ratification by Congress, U.S. govt. will receive $10 billion and NextWave will receive $5.85 billion after taxes. Company relinquishes its claim to licenses, which then can go to winners of FCC’s re-auction last Jan., including Verizon Wireless, Alaska Native Wireless, which has financial backing of AT&T Wireless, and Salmon PCS, which has financing from Cingular Wireless. In statement late Tues., Powell said that “regrettably,” U.S. Appeals Court, D.C., last summer had reversed FCC decision to cancel NextWave’s licenses for nonpayment, clearing the way for company to repay $4.7 billion owed to govt. for licenses. “This settlement offered a better alternative,” Powell said. “It reclaims the licenses and puts them in the hands of companies that can put them to use quickly for consumers.” Rather than nearly $5 billion that U.S. would have collected under D.C. Circuit ruling, “the American people will receive $10 billion,” he said. Noting that settlement required implementing legislation, Powell said he hoped Congress “turns to the matter promptly in order to put this matter behind us and to ensure a resolution that maximizes the public interest.” He said it would have been “preferable” to have carried results of reauction to completion and have kept nearly $16 billion in bids intact: “That option was extinguished by the court and I believe this settlement is the best outcome under the circumstances.” Justice Dept. said settlement also must be approved by U.S. Bankruptcy Court, White Plains, N.Y., which has been overseeing NextWave’s reorganization plan. DoJ said: “The settlement agreement ends years of litigation concerning the right to use wireless spectrum covered by the licenses previously issued to NextWave and it also avoids the prospect of years of additional litigation during which the wireless spectrum covered by the licenses could not be put to public use.” Agreement itself can’t be implemented until implementing legislation is in place and bankruptcy court provides approval, DoJ said. “In the meantime, the government’s petition for a writ of certiorari is pending before the Supreme Court,” it said.
Proposals to fund universal service program on per-line basis (CD Nov 20 p1) would unfairly penalize low-volume users of long distance services, AARP told FCC in Nov. 16 ex parte letter. AARP said consumer who made no long distance calls now paid average of 44 cents per month but proposal by coalition of long distance companies and business users would raise that to average of $1.25. Filing said 44% of consumers were low-volume users and 25% made no long distance calls. “On the other hand, the 20% of Americans who are high-volume users of long distance would see their bills decline from $2.59 to $1.90 on average,” organization said. AARP said it ideally would like system where there was no line item on bills because carriers would recover Universal Service Fund contributions as cost of business. Absent that change, “we support maintaining the existing system… based on a percentage of the cost of long distance phone calls a consumer makes,” AARP said.
Fla. PSC staff urged agency to disregard customer base in determining when incumbent telcos must pay CLECs reciprocal local compensation at higher tandem rate. Case 00-0075-TP to set qualification rules for tandem compensation is on PSC’s Dec. 5 meeting agenda. Staff said CLEC should qualify for tandem rate if its switch were capable of serving geographic area comparable with that served by incumbent’s tandem switch, or if CLEC switch performed trunk-to-trunk switching functions similar to those of incumbent’s tandem switch and CLEC has designated phone numbers for exchanges within tandem coverage area. Staff urged rejection of BellSouth and Verizon position that CLECs must be compensated at lower end-office rate unless they are providing dial tone to actual customers within comparable geographic tandem area. PSC staff said FCC rules allow tandem-rate compensation when CLECs have comparable geographic coverage, but don’t require comparable customer base within coverage area. Staff also said CLECs’ geographic tandem coverage area could be “roughly the same size but not necessarily identical” to incumbent’s area and still qualify for tandem rate.
FCC is seeking comments on satellite digital audio radio service (SDARS) plan for compensation methodology to reimburse Wireless Communication Service (WCS) licensees to eliminate effects of blanketing interference to their receivers. Commission also is seeking comment on alternatives for long-term solution to potential blanketing interference between SDARS and WCS licensees with stations close to high power repeaters. Effect of SDARS operations on Multipoint Distribution Service (MDS) and Instructional TV Fixed Service (ITFS) licenses also is being studied, Commission said. Comments are due Dec. 14, replies Dec. 21.
N.Y.C. Dept. of Information Technology & Telecommunications urged FCC to require that at least 2/3 of preprogrammed mobile handsets provided under priority access service (PAS) be allocated to city for use by authorized emergency workers. N.Y.C. outlined recommendations in comments on Verizon Wireless request to agency for waiver in implementing wireless PAS (CD Nov 23 p6). Verizon has said commercial, off-shelf technology that met FCC guidelines wasn’t available. National Communications System (NCS) said earlier this month that Verizon would be tasked to provide PAS capability for Washington, N.Y. and Salt Lake City on near-term basis. N.Y.C. stressed extent to which PAS solutions proposed by Verizon -- Emergency Services Capability (ESC) and Access Channel Persistence -- wouldn’t be able to service “all current or future” national security and emergency personnel (NSEP) with priority access. “NCS will face the novel challenge of determining how to provision authorized NSEP users. The result will be inability to access any radio channel, undermining the objectives of Verizon’s interim solutions,” Agostino Cangemi, gen. counsel for city department, said. He said initial Emergency Services Capability solution planned by Verizon contemplated one level of priority access, while proposed alternative would have 2 levels. City said its personnel typically were first responders in critical early hours of emergencies. “It is imperative that the FCC ensure that the city’s highest priority emergency communications users receive the benefit of any improved emergency response capabilities,” especially in light of waiver of FCC guidelines for PAS, Cangemi said. City wants FCC to grant waiver so NCS can be directed to consult closely with N.Y.C. and give “substantial deference” to its assessment of critical emergency response needs. City raised concerns that without protections of Part 64 rules governing PAS implementation, it wouldn’t have certainty that it would receive “modest” PAS capabilities under Verizon proposal. Cangemi said city also would like FCC’s newly created Homeland Security Policy Council to play “ongoing role” in overseeing waiver implementation. Specifically, city recommended NCS report to council at regular intervals during waiver period. City asked FCC to authorize council to revolve any disputes that “may arise regarding whether NCS is provisioning ESC and access channel persistence in accordance with the terms and conditions” of waiver order.
DTV set penetration might reach 75.5% by 2006 if FCC mandated that all new sets sold after Jan. 1, 2004, have DTV reception capability and that all TV stations complied with current DTV transition schedule, according to report commissioned by NAB and MSTV. Figure falls to 65% if FCC mandates phased implementation of DTV receiver rules, starting with larger sets, according to report, which was submitted to FCC as ex parte filing. If FCC leaves transition to free market forces, report by Arthur D. Little projected that DTV penetration would reach only 8.5% (9.3 million sets) by 2006. Under free market scenario, incremental cost to manufacturer of adding DTV capability would be expected to decline to $21 per set by 2006, from current $100, under phased mandate figure would drop to $9 and under full mandate to $8.40. Report acknowledged initial cost increase of adding DTV capability “could substantially affect purchasing decisions regarding low-end sets,” and consumers weren’t likely to pay more than $60 premium for DTV capability on low-end sets. Study assumed FCC would mandate that DTV reception capability would simply be added to standard-definition set, making it dual-mode.
CTIA laid out for FCC Common Carrier Bureau Chief Dorothy Attwood industry’s commitment to meet Nov. 24, 2002, deadline for implementing thousands-block number pooling. But group cited several remaining challenges, including testing deadlines and vendor readiness. CTIA letter followed one that N. American Numbering Council (NANC) subcommittee on wireless number portability sent to Attwood Nov. 20 on delays in intercarrier testing schedule for wireless number portability and pooling. NANC subcommittee, which said test setbacks could hurt industry’s ability to meet deadlines, said concerns included inability of several switch and network component vendors to provide upgrades until after Oct. 2001 and possibly not until after May 2002. It said several operation support system (OSS) vendors said they wouldn’t be able to provide system upgrades until after Oct. 2001 and possibly not until after May 2002. “Many nonparticipating providers” in top 100 markets haven’t yet said they would be ready for tests, letter said.
Center for Digital Democracy said it had begun letter- writing campaign in attempt to put an end to FCC efforts that it said “threaten to weaken or end key public interest safeguards” in agency’s current TV and cable ownership restrictions. Center said letters would be sent to President Bush and congressional leaders urging opposition to relaxation of ban on newspaper-broadcast cross-ownership and ownership limits on cable MSOs -- both of which currently are under review by FCC. “Critical public interest safeguards designed to promote meaningful diversity or perspectives are likely to be eliminated” under FCC Chmn. Powell, Center Exec. Dir. Jeffrey Chester said: “Without these and other rules, a handful of already powerful media companies will be able to further dominate communications in the U.S… Journalism will be the victim of any new deregulatory policies, weakening that vital institution precisely at the time we need it to provide more information and critical analysis.”
Lockheed Martin (LMGT) and TRW received FCC authority to transfer control of Astrolink Ka-band system to LMGT, TRW, LSAT Astro and Telespazio Luxembourg. Transfer should facilitate construction, launch and operation of Astrolink system and lead to efficiencies that will expedite deployment of Astrolink broadband network, Commission said.
Verizon submitted Sec. 271 application at FCC Mon. for R.I., 5th state for which it has requested approval to offer interLATA long distance. Earlier this month, R.I. PUC gave unanimous conditional endorsement to Verizon’s long distance entry bid, concluding carrier had met all 14 points of Telecom Act’s open local market checklist. PUC ordered some changes in wholesale service performance assurance plan but said local markets were fully open to competition. FCC has 90 days to review Verizon’s R.I. long distance application. PUC and Justice Dept. each will provide recommendations to Commission before decision. Other upcoming FCC dates are Dec. 12 and 13 for ex parte meetings related to comments, with comments on application due Dec. 17, same day PUC comments are due. Dept. of Justice evaluation is due at FCC Jan. 4 and ex parte meetings related to reply comments will be Jan. 7-8, reply comments Jan. 10. Donna Cupelo, regional pres. of Verizon in Mass. and R.I., said “local competition is already thriving in Rhode Island. But in states where Verizon has received long distance approval from the FCC, our entry has stimulated even greater competition, not only in long distance offerings, but also in local service packages.” Verizon said KPMG Consulting, which R.I. PUC had hired, had undertaken “exhaustive review” to verify that operations support systems in state were same as those in Mass., where Verizon’s Sec. 271 application was approved by FCC in April. “Based on that review, KPMG concluded that Verizon’s systems in Rhode Island would provide equivalent or superior results,” Verizon said. As example, Cupelo said company met specified intervals for providing interconnection trunks to CLECs and providing physical colocation arrangements to competitors 100% of time.