Verizon Wireless took exception to FCC assumptions in recent report on technical challenges of 2.5 GHz band now used for Instructional TV Fixed Services and MMDS for 3rd generation and other advanced services. In comments submitted this week on final reports by NTIA and FCC (CD April 2 p1), Verizon said agency didn’t determine how much spectrum assigned to ITFS licensees was used to provide instructional services and how much was leased to commercial providers such as WorldCom and Sprint. Verizon said final report attributed failure to include estimates on how much excess capacity was being leased to MMDS operators to lack of licensing data. It said there was “overwhelming evidence” that “significant portions of the 2500-2690 MHz band are no longer used to deliver educational services, and that the band has been largely commercialized.” (ITFS licensees have made dozens of filings at FCC in recent weeks describing educational uses of spectrum and urging agency to leave it untouched). Verizon questioned how Commission could conclude band segmentation would create technical and economic difficulties for ITFS licensees if it didn’t know exactly how much spectrum they were using for educational purposes or for leasing. “The only harm to ITFS incumbents would be the potential loss of revenue collected through spectrum leases,” Verizon said. FCC Mass Media Bureau recently rejected Verizon emergency petition that asked that decisions on 2-way applications for MMDS and ITFS be delayed until larger decisions on 3G spectrum allocations were made (CD April 5 p6). Meanwhile, Sprint submitted 3G position paper to Commission Tues. contending that relocation of incumbents in 2.1 and 2.5 GHz bands would impose huge relocation costs on new entrants, would compromise Sprint’s “ability to compete against telephone and cable company high-capacity residential services and will likely end the interdependent relationships developed between Sprint and its educational partners.” In its reply comments on final reports, CTIA asked why documents didn’t factor in recommendations made by industry during outreach programs conducted by NTIA. “The recommendations were either not addressed or were dismissed out- of-hand in the NTIA report,” CTIA wrote. Military has left several questions unanswered in NTIA report, including how that spectrum’s increased use worldwide for commercial wireless services had affected Dept. of Defense operations, CTIA said. (CTIA has indicated preference for using 1710-1850 MHz, rather than MMDS/ITFS bands, for advanced wireless services allocations.) CTIA questioned why industry wasn’t given chance to comment on DoD report appended to NTIA final 3G document. CTIA noted DoD concerns in moving satellite control operations to 2025-2110 MHz because of regulatory status of those systems in relation to electronic newsgathering systems in U.S.
Mich. PSC approved enforcement mechanism to ensure continued Ameritech compliance with wholesale service performance requirements after it enters interLATA long distance market. Action would conform to FCC findings in previous Sec. 271 cases that effective remedy plan for performance failures was essential to Sec. 271 compliance. PSC in Doc. U-11830 went with Ameritech proposal for performance assurance plan modeled on successful SBC program in Tex., but made some modifications. Agency rejected CLEC-sponsored alternative that included absolute parity floor not tied to Ameritech retail service levels. PSC said it would address CLEC concerns that retail service quality would decline to wholesale level through general service quality enforcement. Maximum annual penalty in fines and rebates is capped at 36% of Mich. gross revenue (about $330 million). PSC rejected variety of penalty exclusions Ameritech sought for conditions beyond its control, waiving penalty only if performance failure was caused by CLEC. PSC also rejected idea of basing penalty escalations on type of failure within each performance area, instead opting for escalation based on number of failures. It said formula in Ameritech’s plan for calculating penalty amounts owed might not produce large enough performance incentive. Rather than change formula, PSC simply said formula result should be doubled. It also said rebates to CLECs should be paid as direct checks, not bill credits.
Denying Southern Linc request to reject applications, FCC Wireless Bureau granted license transfer requests in which Motorola has sought to assign 59 900 MHz specialized mobile radio (SMR) licenses to Nextel. Southern had argued that transaction would decrease competition in trunked dispatch market, making Commission approval of applications against public interest. Southern wanted FCC to take narrow view of market by limiting its examination to impact of deal on trunked dispatch services provided only by SMR operators at 800 MHz and 900 MHz. Nextel offers products that compete with all commercial mobile radio service providers (CMRS). Bureau said it wasn’t necessary to decide whether it must define market that included all CMRS providers because “we conclude that the applications may be granted even assuming narrower market definitions.” Order said: “Nonetheless, we also recognize the increasing convergence of CMRS services and may well adopt a broader market definition in reviewing future transactions.”
As expected, FCC issued public notice Wed. seeking comment on whether its MediaOne merger conditions should still apply to AT&T now that U.S. Appeals Court, D.C., has struck down cable ownership limits as unconstitutional (CD April 12 p2). In 4-page notice, Cable Bureau asked for comments “regarding the effect, if any, of the court’s ruling on the conditions imposed” in last June’s MediaOne order. “In particular, the Commission seeks comment on whether to proceed with the conditions in light of the court’s decision,” notice said. Cable Bureau also set deadlines for comments on notice and related petition for reconsideration of cable ownership decision filed by Consumers Union. Comments are due May 11, replies May 25.
FCC Wireless Bureau plans to convert maritime coast and aviation ground services to universal licensing system (ULS) April 30. Bureau’s ULS is consolidating 11 licensing systems used to process wireless applications in electronic filing system that includes automated checking of applications.
Top Walt Disney executives pressed FCC Chmn. Powell and Commission staffers to impose interactive TV (ITV) open access requirements on cable operators in several recent meetings. Disney Chmn. Michael Eisner, Pres. Robert Iger, Exec. Vp Preston Padden and Vp-Govt. Relations Susan Fox met with Powell, legal adviser Susan Eid and staffs of Mass Media Bureau, Cable Bureau and Office of Plans & Policy, stressing potential for cable operators to discriminate against independent programmers by not providing return path for their ITV offerings. Disney executives also raised concerns about ability of vertically integrated MSOs to favor their own ITV services. In addition, Disney officials pressed their case for FCC to relax its broadcast ownership cap. Meetings, revealed in new ex parte filings at Commission, came just before agency, in response to petition from Media Access Project, extended deadline to May 11 for reply comments in its ITV inquiry (CD April 11 p7).
FCC approved its first batch of low-power FM construction permits, it said in public notice (44965) issued Tues. CPs are for stations in Fresno, LeMoore, Lucerne, N. Edwards, Oroville, Porterville, San Clemente, Smith River, Turlock and Woodland, Cal.; Augusta, Colquitt, Ft. Valley, LaVonia, Louise, Tallapoosa and Trenton, Ga.; S. Bend and Valparaiso, Ind.; Mansfield, La.; Rockland, Me.; Ocean City, Oakland and Sherwood, Md.; Enid Okla.
VoiceStream and Deutsche Telekom asked FCC to amend their pending merger review documents to reflect several licenses that VoiceStream had bought since license transfer applications were filed in Sept. Additional licenses include several that VoiceStream purchased from Cook Inlet Region Inc. and application to transfer control of GTE Wireless of Cincinnati to VoiceStream subsidiary. VoiceStream subsidiaries Omnipoint and VS Washington also have acquired wireless license since application was filed involving DT acquisition of VoiceStream. VoiceStream and DT asked that licenses that DT is acquiring include those recent VoiceStream acquisitions, as well. “The Commission’s staff has now requested that VoiceStream and DT submit an amendment to expressly list in the petition all licenses which have either been acquired or have been proposed to be acquired since the filing of the petition,” companies wrote in April 12 ex parte filing. They said DT’s indirect foreign ownership of VoiceStream’s licensee subsidiaries, including newly purchased assets, wouldn’t violate any Commission rule and “would yield substantial public interest.”
Verizon will offer “simple” long distance calling plans in Mass. that provide services without “gimmicks” inherent in competitors’ plans, company announced Tues. in news conference. “Competitors’ business practices are often confusing and misleading,” full of “hidden charges,” Verizon Long Distance Pres. Maura Breen said. “We will offer honest plans with one call for service with a fair price.”
FCC denied request for stay of assignment order from Norris Satellite Tues. as moot because of nullification of company license for failure to meet milestones. Petition to deny filed by CAI also was denied.