Qwest said Colo. PUC found it complied with all 14 points of Sec. 271 interLATA long distance checklist. But PUC and CLECs said agency’s clearance on points related to Qwest’s operation support systems (OSS) was contingent on Qwest’s passing regionwide 3rd-party OSS test that still was continuing. PUC spokeswoman said agency hadn’t decided whether it would support Qwest long distance entry. She said final regionwide OSS test results were due in mid-Dec. and PUC would meet Jan. 8-10 to review case record. Qwest said PUC’s finding “highlights the fair and equal access to our network that exists for competitors as required by the FCC and Congress” and moved carrier closer to saving Colo. customers more than $200 million from increased long distance and local competition. Qwest also said it was meeting or exceeding wholesale-retail parity requirements on more than 90% of wholesale performance indicators. But WorldCom said “it’s brazen of Qwest to be tooting its own horn” on progress in opening Colo. local markets when vast majority of consumers in state still were waiting for opportunity to make competitive choice.
E.spire filed complaint with Md. PSC against Verizon for nonpayment of more than $1.4 million in reciprocal compensation. Companies are in dispute over interpretation of FCC reciprocal compensation rules and e.spire also contended that Verizon was withholding payments in violation of Md. PSC order approved in June. That order required Verizon to pay reciprocal compensation under old interconnection agreements until it negotiated new ones with CLECs that reflected FCC reciprocal compensation rules.
In latest step in long legal wrangling, U.S. Appeals Court, D.C., ruled Fri. that it was “appropriate” for FCC to make ILECs liable for payment of damages because they improperly assessed end-user common line (EUCL) access charges on payphone providers. However, court said, since FCC hadn’t yet determined how it would calculate damages, ILECs still had right to present their “equity concerns” to FCC during that phase of proceedings. Case stems back to late 1980s when ILECs decided to impose EUCL charges on “smart” payphones operated by independent payphone providers (IPPs). When IPPs complained that charges were improper because IPPs weren’t “end users,” FCC sided with ILECs. IPPs won remand from Appeals Court that said FCC didn’t properly justify imposing EUCL charges on IPPs while exempting their own ILEC-provided payphones from such charges. On remand, FCC issued “liability order,” concluding EUCL was “unreasonable charge” under Communications Act. ILECs led by Verizon returned to court to appeal that FCC ruling, leading to court’s decision Fri. upholding Commission. Much of oral argument in case (CD Sept 7 p7) focused on whether FCC’s liability order was final since agency hadn’t determined damages yet -- and thus whether court should even hear appeal. In order written by former Chief Judge Harry Edwards, court determined that order was final and upheld FCC’s finding that ILECs violated unreasonable charge provisions of Act “even though the Commission initially construed the… rules to allow the charges.” Edwards said “we do not believe that the Commission should be prevented from stating the law correctly merely because it may have misconstrued the applicable rules in the past.” However, court said “we express no opinion as to whether damages or some other monetary remedy are appropriate in this case, or whether such a remedy, if appropriate, may be imposed retroactively.” Chief Judge Douglas Ginsburg and Judge Laurence Silberman also were on panel. Case is Verizon Telephone Companies v. FCC (00-1207).
Approval of Northpoint’s terrestrial wireless licenses should precede Commission’s review of proposed EchoStar- DirecTV merger, group of members of Congress told FCC Chmn. Powell. House Commerce, Trade & Consumer Protection Subcommittee Chmn. Stearns (R-Fla.), House Telecom Subcommittee ranking Democrat Markey (Mass.) and Reps. Green (D-Tex.) and Radanovich (R-Cal.) said that “in order for this merger to satisfy the public interest, consumers must have choices beyond the satellite-cable duopoly.” Northpoint’s pending licenses have languished for 3 years because of DBS industry position that Northpoint spectrum-sharing technology would cause harmful interference to DBS signals. Recently announced merger proposal (CD Oct 30 p1) has drawn mixed reviews from Hill. While some, including Rep. Boucher (D- Va.), see merger creating viable competitor to cable, others lament diminished consumer choices. Green said separately that without swift approval of Northpoint licenses, merger would leave only 2 choices for multichannel video programming: (1) Cable and (2) New DirecTV-EchoStar DBS entity. “Northpoint would give consumers a third choice using a new wireless distribution technology,” Green said.
FCC signaled it wouldn’t enforce PCS construction deadlines strictly and said it would consider waiver requests from carriers on “case-by-case basis.” In order released Fri., Commission granted limited waiver of 5-year coverage requirements for 23 data-only PCS licenses held by Leap Wireless, extending deadline to Oct. 24, 2002. FCC also extended construction deadline for 6 voice service licenses to Feb. 28. “Specifically, we find that strict application of the rule would not support the statutory and Commission goals in adopting PCS construction requirements,” order said. For 23 data licenses, agency determined that short extension of time for Leap to obtain equipment and deploy advanced services was reasonable because Qualcomm 1xEV-DO equipment wouldn’t be available until late spring. Leap said it would deploy broadband wireless data service that provides Internet access up to 2.4 Mbps over 1.25 MHz channels. FCC said all markets where Leap requests relief were small or midsized and 23 data licenses represented 20 BTA markets. “The fact that Leap intends to provide broadband services, and not traditional voice service, to those sparsely populated areas furthers the Commission’s goal of bringing advanced services to rural areas,” order said.
In attempt to correct what FCC Chmn. Powell said had been “a quagmire for years,” Commission Thurs. began rulemaking to “provide clarity and certainty” in its radio multiple ownership rules as well as what defined local market. Agency said it would conduct “comprehensive examination” of its rules and polices on multiple ownership in individual markets. Action is designed to make those rules “more responsive to current marketplace realities” while maintaining its “core public interest concerns” of promoting diversity and competition, Commission said. Noting “substantial changes” had resulted in ownership consolidation as result of 1996 Telecom Act, agency “expressed concern that FCC policies on local ownership do not adequately reflect current industry conditions.” Commission requested comments on: (1) “Specific empirical data” on effect of consolidation on public interest. (2) How sale of existing group should be handled. (3) How to treat claims that station was failing, dark or unbuilt. (4) Whether FCC should rely on numerical limits or other rules in acting on public interest determinations. (5) Whether public interest should be handled in “case-by-case analysis.” (6) How to treat local marketing, time brokerage and joint sales agreements under rules. While rulemaking is under way, Commission said staff will continue to “flag applications that raise competitive concerns” in given market. FCC also set timetable for Mass Media Bureau to resolve pending applications -- giving bureau 90 days to come forward with recommendations on those pending for more than year. Endorsing proceeding, Comr. Copps said “the criteria used to evaluate proposed transfers and mergers cry out for sunshine and clarity… The public interest is served when the private sector has clear and transparent rules of the road… “ Comr. Martin said it was “imperative that we get moving” to clarify the rules,” but said he would have favored “more direct action” immediately to regulate mergers and acquisitions. NAB Exec. Vp Henry Baumann said Commission had “done the right thing” in moving to correct FCC’s “confusing and uncertain standards” on mergers. But, he said, it’s “disappointing” that “flagging” practice will remain. Baumann said it had “resulted in long delays for hundreds of transfer applications that meet all applicable standards.” At news briefing, Mass Media Deputy Bureau Chief Robert Ratcliffe said transfer and merger applications were flagged if approval would result in single owner’s having 50% of radio advertising in given market or 2 group owners combined with 70%.
Eldorado Communications filed emergency petition with FCC asking that it halt further participation in “nonpublic negotiations” on settlement agreement for NextWave licenses. Memphis-based Eldorado competed with NextWave in 1996 PCS auction, winning 3 licenses but dropping out of bidding for others when prices got to be too high. Eldorado said it had to return C-block licenses it won to FCC “at substantial cost as the result of the disruptive bidding strategies and post- award defaults of NextWave.” If FCC continues to participate in settlement talks with NextWave and licenses winners in Jan. re-auction of C-block licenses, “the injury to Eldorado and others will be compounded,” petition said. Eldorado’s petition comes as govt., NextWave and wireless carriers are coming down to wire on $16 billion settlement agreement in which re-auction winners could reclaim licenses that U.S. Appeals Court, D.C., essentially returned to NextWave after overturning Jan. re-auction results. Eldorado asked that FCC halt all private negotiations and meeting with representatives of NextWave and others. It wants public to have immediate access to information on negotiations and to initiate open proceeding for “consideration of any disposition of NextWave licenses.”
FCC Common Carrier Bureau seeks comment on joint petition for expedited temporary waiver of 10-digit dialing implementation filed by N.Y. State Public Service Commission (PSC), N.Y. State Consumer Protection Board and City of New York. In 1998, PSC implemented area code overlay of 212 in N.Y.C., but didn’t implement 10-digit dialing. FCC requires 10-digit dialing for telephone calls within and between area codes subject to overlay. Recent decision by U.S. Appeals Court said 10-digit dialing must be implemented in N.Y.C. by July 28. Petitioners requested additional 14 months granted by Court of Appeals, saying it would be difficult to begin process after damage to infrastructure and businesses as result of Sept. 11 terrorist attacks. Comments are due Nov. 23.
Recognizing that some of its deadlines and requirements in move of TV stations to digital have hindered rather than helped, FCC took several steps Thurs. to clarify and relax its rules in hope of speeding up transition. Agency said relaxed requirements, among other goals, were designed to provide flexibility for stations in transition and to help small-market stations with financial difficulties. Commission also provided for waivers of rules in certain circumstances -- but 3 of 4 commissioners warned those waivers would be hard to come by.
S.C. PSC ordered BellSouth (BS) to make certain changes in its operation support systems (OSS) in decision separate from but related to its unanimous vote Nov. 6 to give unconditional endorsement to BS long distance entry. PSC said BellSouth was to implement OSS changes by time it received FCC authority for interLATA long distance service, but didn’t make its Sec. 271 support contingent on OSS changes. PSC in Case 2001-209-C told BellSouth to combine its separate connect and disconnect order forms into single “change” order to eliminate possibility that customers switching local carriers might lose dial tone. BellSouth also must alter OSS to allow direct electronic insertion of customer identifying information into CLEC local service requests instead of having CLECs type information manually, reducing chance for errors. PSC directed BS to amend its statement of generally available terms to provide for payment of monetary penalties to CLECs if BellSouth missed certain crucial wholesale performance benchmarks. Order also requires BellSouth to begin submitting monthly wholesale performance reports starting in Jan. Ga. PSC this fall followed similar approach by first endorsing BS long distance entry and then issuing separate order for OSS changes.