FCC Comr. Ness will leave FCC at end of May proud of her work on E-rate and Telecom Act implementation, disappointed that agency didn’t move on redefining broadcast markets to ease radio concentration and ready to “weigh her options” for next job, she told news media after FCC agenda meeting Thurs. Ness reportedly has been thinking about going into academia, but she wouldn’t give any hints in impromptu news conference other than saying any future job probably would involve communications. “I am squelching the rumor that I'm opening a world-class restaurant in the Portals,” Ness said. FCC’s Portals building is in area not known for good restaurants.
Verestar received special temporary authority to operate earth stations in Brewster, Wash., from FCC to support initial equipment and in-orbit tests of geostationary satellite orbit for ICO F2 satellite scheduled for launch June 6. Authority is for 60 days and confirms earlier reports that ICO would test satellites before launching entire system.
“The explosion of wireless technologies threatens to push military equipment off prime radio frequencies just as we're spending billions to link our forces on the digital battlefield,” House Govt. Reform Committee Chmn. Burton (R-Ind.) said at hearing Wed. Full committee hearing addressed issues of “encroachment” on military training, such as commercial development, environmental regulations, airspace restrictions and “conflicts over the use of radio frequency spectrum,” Burton said. In future hearings, encroachment issues involving federal agencies that interact with Dept. of Defense, including NTIA, will be addressed, he said. Much of written testimony prepared by brass representing Navy, Marine Corps, Army and Air Force dealt with environmental issues, but several also touched on spectrum issues. NTIA is evaluating 1.7 GHz band now occupied mostly by military for potential for 3rd-generation wireless and other advanced services, while FCC is conducting overview of 2.5 GHz spectrum occupied by MMDS and ITFS licensees. Gen. John Jumper, commander of Air Force’s Air Combat Command, cited effects of “the possible sale of government-owned radio frequency spectrum on air combat training systems.” He testified: “We not only need land and airspace but we rely heavily on critical parts of the electronic spectrum to carry out our missions. We must also ensure we can continue developing new electronic countermeasures and counter-countermeasures systems and capabilities.”
Dept. of Justice told FCC it had concerns about SBC’s request to offer long distance services in Mo. because carrier might not be treating competitors fairly. In May 4 filing with FCC, which was publicized Wed., DoJ questioned whether prices SBC charged competitors for unbundled network elements (UNEs) were cost-based, adding that many prices in Mo. were “significantly higher” than in Kan., Okla. and Tex., states where SBC already has won Sec. 271 entry into long distance business. “Moreover, competitive entry using UNEs to reach residential customers is almost nonexistent, suggesting that entry may have been impeded by above-cost rates,” DoJ said. Before FCC makes decision on SBC’s petition, it should “undertake an independent scrutiny” of prices charged by SBC to competitors, rather than relying on Mo. PSC price-setting decisions, DoJ recommended. Dept. also expressed concerns whether SBC was “in compliance with its resale obligations,” particularly its resale of advanced services such as DSL, and urged FCC to “further investigate” company’s resale practices. Sec. 271 of Telecom Act requires FCC to consult with DoJ before determining whether Bell company should gain long distance entry. SBC Senior Vp Priscilla Hill-Ardoin said company was pleased that DoJ focused on only 2 issues, both of them areas where SBC believed it was on firm ground. She said Mo. PSC conducted extensive proceedings for 2-1/2 years to set rates based on FCC principles. She said company also believed it was in compliance with recent ASCENT decision by U.S. Appeals Court, D.C., on resale of advanced services.
MDS America has “proved Northpoint system can co-exist” with DBS on day-to-day basis, CEO Kirk Kirkpatrick told us Wed. in interview on proposed plans for U.S. service. FCC issued experimental license to MDS America Fri. (CD May 7 p7). Company could offer new challenge for Northpoint and to DBS, which is opposed to allowing terrestrial services in 12.2-12.7 GHz band (CD May 8 p7). FCC is considering several spectrum-sharing options for satellite services, but Northpoint debate has been most contentious. MDS America, which competes with Northpoint, may end up as ally in proceeding (CD April 27 p7).
House Telecom Subcommittee Chmn. Upton (R-Mich.) will hold hearing on efforts to increase FCC enforcement authority and will focus on standalone bill he introduced late May 8 that would increase penalties Commission could impose on violators of telecom regulations. Despite recent refusal by House Commerce Committee Chmn. Tauzin (R-La.) to consider measure as amendment to his and ranking Democrat Dingell’s (Mich.) data deregulation bill (HR- 1542), Tauzin said Wed. at markup of HR-1542 that language of Upton bill eventually could be added to Tauzin-Dingell. In recent Subcommittee markup of HR-1542, Tauzin refused to consider Upton’s enforcement measure, which he said wasn’t germane to data deregulation legislation. However, Tauzin said if House Rules Committee granted germaneness waiver, Upton bill (HR-1765) could be attached to Tauzin-Dingell when it reached House floor. HR- 1765 would increase FCC’s statute of limitations to 2 years from one and increase maximum penalty to $1 million per violation from $120,000. It also would double those penalties for repeat offenders. Markup was continuing at our deadline.
Comprehensive review of various state telecom taxes is proposed in bill (SB-394) in Cal. Senate Appropriations Committee. Review is necessary to ensure that rationale for levies was valid in light of developments related to Internet and telecom industry’s “competitive structure,” measure said. It would direct Legislative Analyst to evaluate justifications for levies and equitable treatment of taxpayers. Bill would extend until Jan. 2004 current moratorium on taxes on Internet access, use of online computer services, bandwidth tax and any discriminatory tax on online computer service or Internet access. Intent is to offset scheduled sunset of Cal. Internet Freedom Act Jan. 1, 2002. Measure also would extend prohibition on cities’ requiring franchise fees for cable-delivered Internet services if FCC or court of competent jurisdiction ruled cable modem service wasn’t cable service. Meanwhile, cable is fighting for safeguards against “unfair” competition potential of another bill (SB 23X) that would make it easier for cities to enter energy business in wake of problems of investor-owned utilities (IOUs). Cable anticipated that bill, which would allow new municipal utility districts (MUDs) to acquire IOU infrastructure, including utility poles, could result in cities’ jumping into cable business and raising rates for pole attachments. Cable didn’t want fast-track process to allow MUDs to compete with cable and telecom companies in “unfair manner,” Cal. Cable TV Assn. Govt. Affairs Dir. Gilbert Martinez said. Referring to recent amendments to address cable’s concerns, he said one that would bar MUDs from entering retail cable business wouldn’t suffice because city-owned utilities still could form partnerships with overbuilders such as RCN Corp. and lease their fiber on advantageous terms. What’s needed is level playing field provisions, he said. As for proposed freeze on pole attachment rates for 5 years, Martinez said that still left room for increases after 5 years. Cable wanted new formula for pole attachment rates charged by new MUDs, he said.
U.S. Appeals Court, D.C., seemed more concerned Wed. about procedural questions than merits as it heard arguments in Qwest challenge to FCC’s pricing rules for traffic that travels between ILECs and paging companies. Issue, outgrowth of reciprocal compensation regime, arose as result of dispute between Qwest and TSR Wireless, one-way paging company in Ariz. Qwest had billed TRS for dedicated facilities needed to pass paging calls to TSR customers. FCC sided with paging company and said charges weren’t legal.
FCC Cable Bureau Chief Deborah Lathen, who presided over Commission’s reviews of AOL-Time Warner, AT&T-MediaOne and AT&T- TCI mergers, announced her resignation from agency Wed., effective May 18. Lathen, appointed to her post by former Chmn. William Kennard 3 years ago, wrote in her resignation letter to current Chmn. Powell that she owed “a huge debt of thanks” to Kennard for “entrusting me with the responsibilities of this Bureau.” She also thanked Powell for “your outstanding leadership and personal friendship.” Lathen, who in Dec. had indicated her intention to leave FCC, said she planned to “spend time relaxing and reflecting as I consider new opportunities.” In statement, Powell praised her for her “hard work,” “remarkable contributions” and “leadership.” No replacement has been announced.
Public interest advocates began fresh push for open access to cable modem, DSL and interactive TV (ITV) networks Wed. with calls for “dot-commons” movement that would press for sweeping changes in national broadband policy. In half-day conference at Carnegie Endowment for International Peace, about 100 advocates met to rally support for federal open access mandates on both cable operators and phone companies. They also discussed ways to counter prevailing deregulatory mood in Washington, debating new regulatory and legislative thrusts against media concentration, new rhetorical approaches on diversity issue and budding local efforts to foster competitive broadband networks. “It’s an uphill struggle but I think there are opportunities,” said Gene Kimmelman, co-dir., Consumer Union’s Washington office.