Following up on earlier letter, ALTS and several CLECs asked FCC in petition filed April 18 to lower Verizon’s charges for use of power in colocated central offices. Petition asked FCC to suspend and investigate Verizon tariff. “CLECs are being forced into bankruptcy because of outrageous practices like this,” said ALTS Pres. John Windhausen (CD April 17 p7, March 28 p4).
Taking another deregulatory step, FCC moved to ease its restrictions on dual-network ownership Thurs., amending rules to allow Big 4 TV networks to own, operate, maintain or control emerging networks UPN and WB. By 3-1 vote, Commission adopted report and order (R&O) eliminating section of dual-network rule that barred mergers between major network and emerging network. As result, Viacom, which already owned financially ailing UPN before buying CBS last May, will be able to keep both networks or sell UPN to any of other 3 major networks if it wants. By same token, AOL Time Warner now could sell WB to any of 4 major networks, although it hasn’t shown any desire to do so.
FCC voted 3-1 late Wed. to adopt long-awaited order reducing carrier-to-carrier payments for Internet-bound dial-up calls. Comr. Furchtgott-Roth dissented. Order ends long debate about high level of reciprocal compensation payments that flow from ILECs to CLECs. Reciprocal compensation is intended to pay one local carrier for terminating call from customer of another local carrier. Because many CLECs signed up ISPs as customers, traffic generally has flowed to CLECs from ILEC. Order caps payments for ISP-bound calls at level that generally is lower than what carriers pay for voice traffic under state-supervised reciprocal compensation agreements.
In its latest status report on nation’s DTV transition, FCC said broadcasters continued to make strides but many challenges remained. Mass Media Bureau Chief Roy Stewart said 38 of 40 stations in top 10 TV markets now were transmitting digital signals, leaving only 2 to go. In next group of markets, number 11 through 30, he said 67 of 79 stations were transmitting digital signals. Overall, he said, there are 190 DTV stations on air, covering 64% of U.S. TV households. He said some DTV markets are particularly flourishing, with 8 operating digital stations in L.A. and 5 in Washington. “We believe the DTV transition is going better than many people give it credit for, although not as fast as some hoped,” he said. “Sometimes, technology takes time.” Stewart said FCC had granted construction permits for 1,090 of 1,688 DTV station allotments, with 598 “nonroutine applications” still pending, largely because of interference or international coordination issues. He said Bureau would “expedite processing for applicants ready and willing to build DTV facilities.” Stewart also cited CEA statistics indicating that manufacturers sold 648,000 sets to dealers last year, up 400% from 1999. But he also mentioned several “caveats:” (1) Sales figures reflect set purchases by dealers, not consumers. (2) Even DTV sales to dealers amount to small fraction of overall TV set sales, which reached 25 million last year. (3) Most sales were of DTV display monitors, not sets with integrated digital tuners. (4) DTV set prices, while falling, continued to be high. Stewart also said that DTV-cable interoperability problems, lack of HDTV and other digital programming and digital copyright protection issues continued to hamper DTV rollout. Comr. Ness welcomed report but chided cable and satellite industries for not doing more to promote DTV transition. “I hope to see some voluntary progress by cable,” she said, noting “lot of reluctance” by industry to carry digital broadcast programming. Ness said she was “pleased” to see discussions between cable operators and public broadcasters about DTV carriage deals (CD April 18 p1). She said she hoped carriage deal between AOL Time Warner and PTV stations would serve as “template” for other carriage agreements.
FCC extended deadline for filing public comments on its further notice of proposed rulemaking on DTV cable must-carry. Responding to request for more time, Cable Bureau pushed deadline for comments back to June 11, replies to July 21. Comments had been due May 10.
Promotions at ABC TV Network: Mary Holahan to senior vp-gen. mgr., Detroit Sales Div.; John Caruso to vp-prime-time sales; John Sadler to senior vp-gen. mgr., Western Div. Sales… Johanna Mikes, ex-FCC Common Carrier Bureau, joins office of Rep. Boucher (D-Va.) as legislative counsel handling telecom and Internet issues… Barrett Toan, pres.-CEO, Express Scripts, nominated to U.S. Cellular board… Changes at Arbitron: Kevin Smith, ex-Wink Communications, appointed senior vp-cable services and PPM business development; Les Tolchin promoted to senior vp-PPM business development; Jay Guyther advanced to senior vp- international PPM marketing… Todd Daniels, ex-Nortel, appointed vp-Western regional sales, Taqua Systems… Kenneth Miller, pres.- Globecomm, moves to CEO, NetSat, replacing Marni Ehrlich, resigning… Nick Shelness, ex-Lotus vp-chief technology officer, named chief technology officer, United Messaging.
FCC Wireless Telecommunications Bureau asked for comment on Space Data Research request filed April 10 for declaratory ruling on or waiver of Narrowband PCS rules, which don’t mention specific types of services company proposes. Space Data said in request it developed free-floating, balloon-borne communications system to provide 2-way paging and other advanced messaging services across U.S., focusing on rural and other underserved geographical regions too remote or too costly for ground-based infrastructure. Company intends to acquire nationwide Narrowband PCS Ch. 4 (901.15-901.20 MHz paired with 940.15-940.20) license from TSR Wireless to operate system. Space Data asked Commission to clarify Narrowband PCS rules or issue waiver stating: (1) Term “base station” encompasses high-altitude, balloon-borne repeater transceivers. (2) Space Data system complies with transmitter listing requirements. (3) Antenna registration requirements don’t apply to antennas that are affixed to high-altitude balloon-borne repeater transceivers. Comments are due May 18, replies May 28. (DA 01-970)
Public broadcasters and major cable operators are starting to discuss digital TV carriage agreements that could short-circuit push by broadcasting industry for DTV must-carry rules. Cable and PTV officials said AT&T Broadband and Cox Communications were holding talks with special APTS/PBS MSO Advisory Committee, while Comcast, Charter Communications and other large cable operators have expressed strong interest in deals. APTS said it planned to approach Adelphia and Cablevision Systems, too, following landmark DTV carriage pact that APTS and PBS signed with Time Warner Cable last Sept. “I would expect to see more conversations between public stations and MSOs in the coming months,” NCTA Pres. Robert Sachs said.
FCC denied Real Estate Access Alliance (RAAA) petition Wed. requesting that Commission delay implementing order that expanded rules preventing restrictions on installing antennas to cover wireless services. Landlords, state and local govts. and other 3rd parties can’t restrict installing, maintaining or using antennas for TV broadcasts, DBS and multichannel multipoint distribution services, FCC said. RAAA wanted Commission to delay order until further notice was resolved or U.S. Appeals Court, D.C., ruled on challenge to existing rule. FCC said RAAA had “failed to make the requisite showing” of need for stay.
FCC Wireless Bureau granted petition by United Telecom Council (UTC) to become frequency coordinator in private land mobile radio (PLMR) service for 800 MHz and 900 MHz business and industrial/land transportation frequencies. UTC already has been certified as frequency coordinator for pool of PLMR frequencies below 512 MHz. Bureau said it also was offering opportunity to other frequency coordinators below 512 MHz to perform same function for those higher frequencies. Order extended earlier decision to allow more than one entity to coordinate frequencies for PLMR services below 512 MHz to PLMR frequencies at 800 and 900 MHz. “We anticipate that any entity that has successfully resolved the complex engineering questions presented by numerous below-512 MHz frequency recommendations will be able to correctly apply the mileage separation requirements set forth in the Commission’s 800 MHz and 900 MHz band PLMR service rules,” order said. Industrial Telecommunications Assn. (ITA) lauded fact that order went beyond UTC petition and opened up competition above 800 MHz to all coordinators. “We believe the rules for dissemination of information among 800 and 900 MHz coordinators should mirror the existing rules between frequency coordinators for private wireless bands below 512 MHz,” ITA said. As example, group said frequency coordinators should be required to notify their peers of their certifications within 25 hours.