FCC cancelled its proposed $4,000 fine against Infinity’s WJFK(FM) Manassas, Va., for broadcasting recorded phone conversations without prior approval. Enforcement Bureau accepted Infinity argument that FCC staffers had tacitly approved practice, saying “the rule was not sufficiently clear to justify a forfeiture.” Infinity plans to request formal declaratory ruling on practice, which involves using delay device that it says would allow it to avoid airing conversation if caller later objected.
FCC denied bid by consumer groups to hold AT&T to original divestiture conditions on its acquisition of MediaOne. Consumers Union, Consumer Federation of America and Media Access Project wanted FCC to enforce its original deadlines for AT&T and MediaOne to meet certain conditions before their merger could proceed. FCC suspended deadlines 2 weeks after U.S. Appeals Court, D.C., on March 2 struck down Commission’s rules limiting media ownership, finding that agency’s 30% cap on number of subscribers nationwide any one cable operator could reach was arbitrary (CD March 5 p1). Original conditions were that by May 19 AT&T would divest its interests in Time Warner Entertainment or end its involvement in video programming or divest its interests in other cable systems to meet 30% horizontal cap. Under original order, AT&T was supposed to report on March 20 whether it believed it would meet May 19 deadline and, if not, immediately submit trust agreement to sell off some of its assets to meet requirements. FCC, in issuing its latest order, said it recently issued Further Notice of Proposed Rulemaking in hope of resolving cable ownership issues. AT&T argued that Appeals Court ruling undermines FCC ownership rules and essentially made merger conditions null and void. At minimum, AT&T argued, FCC should continue to suspend deadlines until agency had new, legal ownership rules. Consumer groups cited public interest as overriding interest, saying FCC should stick to its original deadlines. Consumers Union also sought further reconsideration, asking that FCC reopen case in order to conduct new public interest analysis. Consumers Union’s Gene Kimmelman said Commission was “obviously disinterested” in enforcing ownership limits but must set cable ownership limits if it was to fulfill Congress’s goal of protecting public interest. FCC order, Kimmelman said, “shines a very strong light” on agency’s ownership proceedings. Comrs. said in their order that they believed suspending deadlines was “the prudent and proper course of action” and that it would be “inappropriate” to reopen merger process now. Comr. Copps, only Democrat on Commission, said in separate statement that while he was sympathetic with consumer groups, he “reluctantly” concurred with his colleagues. However, he said, Commission should keep in mind that, as time went by, continuing to suspend rules “becomes tantamount to their elimination.”
Number utilization improved slightly this year, with 46% of nation’s telephone numbers being used as of June 30, compared with 45% year before, according to report issued Tues. by FCC. Low percentage reflects way numbers are assigned -- in blocks of 1,000 numbers at minimum, all of which have to be used in same small geographic area or rate center. Even if carrier needs to serve only 50 customers in one rate center, it still has to obtain 1,000 numbers. That actually is improvement because, until recently, numbers came only in 10,000-number blocks. Smaller 1,000 block segments are available now in some states through process called number pooling. FCC report said carriers had nearly 1.2 billion telephone numbers, 470 million of them assigned to customers, 600 million available for assignment and 110 million used for other purposes. Report showed utilization rate was 52.1% for ILECs, 10.9% for CLECs, 45.3% for cellular/PCS providers, 24.8% for paging carriers.
Change in FCC policy will lead to $160 million increase in fees paid to payphone providers by consumers using prepaid phone cards, International Prepaid Communications Assn. (IPCA) said Tues. Those fees are added when consumers make long distance calls on payphones. FCC in April put long distance companies in charge of collecting payphone fees from their resellers and, according to IPCA, long distance companies plan to increase types of calls for which fees would be payable. Fees currently are paid only when calls are completed, but starting over Thanksgiving weekend they will be charged for all attempted calls, whether or not they're completed. AT&T spokeswoman said long distance companies couldn’t tell whether resellers’ calls were completed so they couldn’t bill only for completed calls. However, she said long distance companies still were talking with FCC about “fair resolution” to reseller fees and no decision had been made.
FCC granted extension of deadline for filing independent auditor’s report as required by SBC-Ameritech Merger order. In letter to SBC, Common Carrier Bureau extended due date to Dec. 12 from Nov. 12 for performance data audit required under one of conditions of merger order. Last audit of service quality performance data revealed number of issues that required interpretative guidance from staff. SBC worked with Bureau staff on issues for several months, affecting independent auditor’s work schedule, FCC said. SBC said extension was necessary to implement interpretative guidance, review its reporting process, submit corrected reports, perform quarter-by-quarter comparative analysis of data.
Responding to fears of terrorists, FCC changed filing procedures for its Gettysburg, Pa., office. Changes include: (1) All mail and deliveries will be diverted to new off-site mailroom at 35 York St. No mail address change is needed. (2) Hand deliveries won’t be accepted if they're enclosed in envelopes. (3) Documents intended for specific staffers must be clearly labeled on first page or cover sheet -- 717-338- 2535.
Sen. Hollings (D-S.C.) and Rep. Tauzin (R-La.), leaders of Senate and House Commerce committees, have introduced companion bills that would strengthen limitations on foreign govt. ownership of U.S. communications companies. Although Hollings and Tauzin are known for their contrasting opinions on how to regulate -- or deregulate -- Bell companies and broadcasters, they agreed that recent push to bolster domestic security must extend to nation’s telecom infrastructure. Hollings said Nov. 8 that bills were nearly identical to one he introduced last year in wake of acquisition of VoiceStream Wireless by Deutsche Telekom (DT): “The legislation I introduce today will bar outright the transfer or issuance of [telecom] licenses to providers who are more than 25% owned by a foreign government. It would also bar the transfer of such licenses to companies controlled by a foreign government.” Tauzin said that “notwithstanding our concerns,” FCC in April approved DT- VoiceStream transaction, then later approved SES-Astra acquisition of GE Americom: “This legislation does not break new ground, but rather simply reaffirms, in no uncertain terms, that the telecommunications, broadcast, broadcast and Internet facilities that underlie our freedom of speech and our economy cannot be made vulnerable to the actions of foreign governments.”
U.S. Appeals Court, D.C. remanded for further explanation part of FCC order allowing AirCell to operate airborne cellular system (CD Oct 3 p11). Court denied most of arguments by petitioners AT&T Wireless, Cingular and Verizon Wireless against AirCell authorization. However, it said FCC should provide more explanation on interference threshold Commission used to determine that AirCell wouldn’t interfere with terrestrial cell operations. In decision written by Judge Judith Rogers, court questioned FCC’s lack of justification for dismissing study by opposing carriers that showed existence of harmful interference. FCC had said study was based on “unrealistically low interference threshold.” Rogers said “this may be so and the court would otherwise defer to the Commission’s expertise.” However, it said, FCC’s “succinct statement fails to provide a reasoned justification for rejecting the minus 124 dBm threshold [used by opposing study], much less a defense of the minus 117 dBm threshold that the Commission viewed as being ‘more realistic.'” Court said FCC’s explanation for concluding in AirCell’s favor on that issue “may be relatively simple.” However, “because there is too much evidence in the record suggesting a contrary conclusion, the court is unable to discern why the Commission considered one interference threshold preferable to another.” Court also questioned how Commission could use July 10, 1997, test data to “extrapolate… in the absence of a probability study” that AirCell never would cause “significant level of harmful interference.” Judges David Tatel and Harry Edwards also were on panel.
Sen. Wyden (D-Ore.) called on the FCC Fri. to undertake comprehensive spectrum reform toward more market-based policies, echoing theme at day-long American Enterprise Institute (AEI)-Brookings conference that focused on how to make U.S. spectrum policy more flexible. “The FCC has taken some baby steps in the direction of spectrum markets,” Wyden said, noting that if reform proceeded on “band-by-band basis, we'll be at this for a long time.” NTIA Dir. Nancy Victory said she would hold summit early next year to solicit “out- of-the-box ideas” on spectrum management policy. Among issues conference focused on were continued need for existing auction process, how to expand secondary markets for spectrum, how FCC could encourage innovation and new wireless technology and how to define spectrum rights without limiting technology that could be used. Victory also provided assurances that “the rumors of 3G’s death are greatly exaggerated,” although she acknowledged attacks of Sept. 11 had impact on process: “Nonetheless, work is proceeding.”
“Under no circumstances should the FCC employ mandatory band-clearing policies” of TV stations on Ch. 60-69 in transition to digital because “there’s no place for them to go,” said MSTV in petition Fri. asking FCC to reconsider its Sept. order designed to help incumbent stations clear those channels voluntarily (CD Sept 18 p2). MSTV told Commission: (1) It must adopt “no new interference standard” when evaluating voluntary band clearance proposals by Ch. 60-69 stations. (2) “Rule out the possibility of mandatory clearing” of channels. (3) Ensure that Ch. 60-69 policies aren’t extended to any upcoming actions involving stations on Ch. 51-59. With 122 analog TV stations occupying Ch. 60-69, “there simply is no room to relocate these stations onto ‘in- core’ [digital] channels,” MSTV said. And, Assn. argued, FCC shouldn’t permit stations to transmit analog signals on assigned DTV channels because it would cause “significant interference” to nearby stations -- including those operating digitally on “in-core” DTV channels. NAB expressed its “opposition to any early clearing of spectrum that in any way would force broadcasters to prematurely vacate spectrum against their will.” NAB said it also opposed any clearing of spectrum by analog stations through “private arrangements” that would result in increased interference or any reduction of free over-air TV: “The Commission’s decisions in this proceeding unfortunately will result in just such a reduction.”