FCC Thurs. revised universal service system that’s used to help nation’s 1,300 rural telcos defray cost of providing service in remote areas. Action at Commission’s agenda meeting came in response to Telecom Act mandate that Commission revise high-cost universal service mechanism to accommodate competition and remove implicit subsidies. Agency’s order increases high-cost fund by cumulative $1.2 billion over 5 years, raising it to $5.6 billion total over period. In first year, $124 million will be added to fund, which currently stands at $840 million annually. Order retains cap on high-cost fund, which rural telcos have fought, but includes mechanism that permits it to grow annually. There’s also some “above-cap” support for carriers that make new investment. New plan will begin July 1.
FCC decision to permit Multichannel Video Distribution & Data Service (MVDDS) operations in 12.2-12.7 GHz band was “arbitrary and capricious,” Satellite Bcstg. & Communications Assn. (SBCA) said in reply to oppositions to its petitions for reconsideration. SBCA said Mitre report represented “new fact not previously on the record.” EchoStar agreed in similar filing asking Commission to re-examine its decision. FCC findings in proceeding have been overtaken in dramatic manner by Mitre independent report which contradicted agency’s conclusion that spectrum sharing was feasible. DirecTV supported SBCA and EchoStar, calling order deficient and saying it failed to justify conclusions. Northpoint, MDS and Pegasus asked FCC to deny SBCA petition for reconsideration.
House Judiciary Committee May 22 will go ahead with review of competing data regulation bills, but panel is still waiting for go-ahead from House Speaker Hastert (R-Ill.) to share formal jurisdiction over movement of bill by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Member Dingell (D-Mich.), Judiciary staffer said. Judiciary Committee Chmn. Sensenbrenner (R-Wis.) recently asked Hastert for “sequential referral” of Tauzin-Dingell bill (HR-1542), which Commerce Committee this week referred to full House for consideration (CD May 10 p1). Judiciary also will discuss merits of bills (HR-1697 and HR-1698) introduced by Reps. Conyers (D-Mich.) and Cannon (R-Utah), which would ensure that antitrust laws aren’t superceded by Telecom Act (CD May 4 p1), officials said.
FCC Wireless Bureau released separate orders Thurs. that require Nextel and AT&T Wireless, which have requested Enhanced 911 Phase 2 implementation waivers, to provide more information related to Phase 2 location technology testing. Nextel in Nov. had asked Commission for waiver of implementation of E911 Phase 2 services in advance of Oct. 1 deadline for making certain location-based information was available to public safety answering points. Nextel had sought waiver of implementation deadline to deploy its handset-based assisted GPS technology. Carrier has told FCC that field trials had shown that technology was only accurate E911 Phase 2 technology available to it. FCC order said Nextel didn’t describe field trials it had carried out, including results. Order sets out questions it wants answered as part of agency’s “ongoing evaluation” of readiness of E911 technologies. Information FCC is seeking includes: (1) List of all tests and studies of E911 Phase 2 location technologies Nextel conducted, including field testing, lab trials, feasibility studies to ascertain whether certain technologies complied with FCC requirements. (2) Results of tests and studies, including accuracy and reliability levels demonstrated in each test. (3) Current and expected availability of each location technology solution tested. (4) Publicly announced plans by Nextel to change air interface standards to CDMA from existing iDEN standard and how those changes would affect E911 Phase 2 deployment. Bureau said it would make that information available to public. Wireless Bureau is seeking similar information from AT&T Wireless, which also has waiver request pending. In separate order on AT&T, bureau also denied carrier’s request that certain information on tests and field evaluations be kept confidential. Bureau said AT&T didn’t meet procedural requirements for confidentiality and didn’t demonstrate by “preponderance of the evidence that the materials in question were entitled to confidential treatment.” Information sought from AT&T Wireless included data supporting its selection of mobile-assisted network location system technology for Phase 2 for its TDMA network. Other details carrier is ordered to provide include: (1) Information on what Phase 2 location technology solution AT&T plans to use for analog wireless phones and test results. (2) “Further information” on planned rollout of GSM network, including timeline, planned discontinuance of service on TDMA network, how GSM network would comply with Phase 2.
Deere & Co. supports Inmarsat FCC application for extension until Dec. 31 to conduct IPO, it said in filing with Commission. Deere said extension would be in public interest and consistent with goal of achieving complete privatization. “Nor would an IPO deadline extension restrict the Commission’s authority under the ORBIT Act to grant conditioned authorizations for access to the Inmarsat space segment for noncore services, such as short-term interim authorizations requested by Deere for its receive-only mobile earth stations,” company said.
Northpoint said potential competitor MDS America made “serious misrepresentation” and attempted to “deceive” FCC and “American business community” by saying it was operating service in foreign markets that was successfully sharing spectrum with DBS operators in 12.2-12.7 GHz band (CD May 10 p5). Northpoint challenged MDS America claims that it was offering video and high- speed Internet services on continuing basis in 20 global markets. Ex parte letter was filed Wed. by Northpoint attorney Michael Kellogg with Office of Gen. Counsel. “We don’t want to be delayed while FCC figures out if MDS has something,” Northpoint Vp Toni Bush said: “It’s a serious issue to provide” FCC with “misleading information. Given the absence of evidence, the FCC should move forward with licensing” of Northpoint system. MDS America CEO Kirk Kirkpatrick disputed Northpoint allegations.
Speaking at European Institute roundtable in Washington Thurs., Robert Verrue, dir.-gen. Information Society for European Commission (EC), demurred from making predictions about proposed framework directive on transparent telecom mechanisms and market power definitions. Last month at meeting of Telecom Council, European Union member states balked at proposals, expressing displeasure over changes to how market power is defined and possibility that EC could require members to amend national regulatory measures, Verrue said in lunch speech. National regulators at council meeting also disagreed with extent to which proposal would place spectrum decisions within scope of proceeding on transparent regulations, he said. “The Commission does not agree with these changes,” Verrue said. Directive is now headed to European Parliament for 2nd reading, where decision will be made over whether to reinstate some or all of original concepts put forward by EC, he said. “At this stage, I am making no predictions about what the final outcome will be,” he said. “The package represents a balance between flexibility and harmonization. The Commission will be seeking to maintain this balance in the final legislative package.” During question and answer session, Verrue was asked about telecom issues he expects to emerge in upcoming dialogue between U.S. and EU. “The time would be right in comparing the U.S. experience in local loop unbundling with what we are trying to do,” Verrue said. In next several days, EC will be posting report on its Web site outlining experience in EU to date with local loop unbundling initiatives. In just past 6 months, progress has been seen, Verrue noted. “A lot is being undertaken but at the same time it’s not enough,” he said. Other telecom issues that may come up in dialogue with U.S. are license specifications, he said. Verrue declined to comment on recent FCC approval of pending VoiceStream-Deutsche Telekom merger, saying only: “I'm happy to be at the end of it.” Panel discussion earlier in day centered around international experiences with deploying 3rd generation wireless systems. Ruprecht Niepold, head of EC’s mobile and satellite communications unit, said one policy alternative for addressing challenges of building out 3G networks might be network sharing, which he said ranges conceptually from site sharing to deeper cooperation among wireless players. In Netherlands, five 3G license-holders are talking to each other about setting up possible model for infrastructure sharing, he said. In part, this model would entail independent company deploying 3G infrastructure network, which all operators would have access to, he said. Such system would be transition until fuller deployment of 3G services, he said. Under this type of model, “regulators will have to be vigilant on how and under what terms infrastructure could be shared,” said Michael Kennedy, corporate vp-dir. of Motorola’s global govt. relations office.
Senate Commerce Committee will hold confirmation hearing May 16 on Presidential nominations to Commerce Dept. and FTC., 9:30 a.m., Rm. 253, Russell Bldg., and confirmation hearing on FCC nominees, May 17, 9:30 a.m., Rm. 342, Russell Bldg.
Making his first bureau chief appointment, FCC Chmn. Powell named Washington telecom attorney Kenneth Ferree as head of Cable Bureau, replacing departing chief Deborah Lathen (CD May 10 p8). Powell announced Thurs. that Ferree, partner in Goldberg, Godles, Wiener & Wright and adjunct law prof. at Georgetown U. Law Center, would take over post May 21, right after Lathen left. Move comes as industry observers speculate that Commission may combine cable, broadcasting and satellite TV regulation in one overall TV bureau, instead of current split of responsibilities among 3 separate bureaus.
FCC Chmn. Powell at Thurs. agenda meeting named Julius Knapp to be deputy chief of Office of Engineering & Technology (OET). Knapp has been chief of Policy & Rules Div. in OET and was chief of FCC lab 1992-1997. Powell also announced Knapp would receive Eugene C. Bowler Award, which recognizes outstanding govt. employees. In another personnel move, Bryan Tramont is joining Wireless Bureau as associate bureau chief and chief of staff, position held by Diane Cornell before she recently moved to CTIA. Tramont has been senior legal adviser to Comr. Furchtgott-Roth, focusing on wireless, international, technology and enforcement issues.