Broadcasters are unfairly blaming cable and consumer electronics industries for slow transition to DTV, CEA and NCTA said in separate comments on broadcasters’ bid for reconsideration of DTV biennial review order (MM 00-39). CEA again said FCC shouldn’t set receiver standards for DTV sets and “critical element” in transition was “an ample supply of high-quality” DTV programming. Group said FCC lacked statutory authority to impose receiver standards and there was “no congressional mandate, and indeed no need” for standards. NCTA criticized what it charged were broadcasters’ “self-serving and disingenuous statements about the cable industry’s role in the digital transition,” particularly claims that broadcasters were only ones investing in DTV. “One would hardly guess that the broadcasters asked the government for a second 6 MHz channel of valuable spectrum,” NCTA said. Meanwhile, it said, cable, which gets no new free spectrum, has invested $42 billion since 1996 in digital cable capability and has signed voluntary agreements with consumer electronics makers to ensure DTV compatibility with cable.
FCC protections for ISPs seeking services from Bell operating companies (BOCs) have failed, competitors told Commission in comments due Mon. to refresh long-stagnant Computer III rulemaking (95-20, 98-10). They said Commission shouldn’t reward Bells by loosening its rules, but should open proceeding on how to better enforce them. “If anything, there is more reason for concern about BOC anticompetitive conduct today than there was in 1998,” last time FCC solicited comments on subject, Information Technology Assn. of America (ITAA) said. “The BOCs have not complied with the safeguards to date, so it makes no sense to eliminate or relax any of the safeguards,” eVoice said. Bell companies are required to create Open Network Architecture (ONA) for competing ISPs, less onerous regime for BOCs than previously required structural separation for Bell ISP subsidiaries. ITAA said FCC still hadn’t justified lifting structural separation requirements to satisfaction of 9th U.S. Appeals Court, San Francisco, and arguments against structural separation were weaker than ever because costs were lower and many Bells were separating themselves anyway to meet long distance requirements. It said Commission recently pointed to use of structural separation for Bell company long distance affiliates as reason to grant long distance applications, and FCC “must explain why structural separation is well-suited to prevent BOC discrimination against [competing phone companies], but is not the appropriate method to prevent similar BOC discrimination against ISPs.” FCC should put teeth in ONA rules, eVoice said. It said Bell companies typically didn’t meet requirement of responding to ISPs within 120 days of being asked to provide service, and in some cases took more than year. ONA rules require Bells to provide service unless it’s not economically or technically feasible, and eVoice said Bells should have to make better showing before claiming such exemptions, and then submit quarterly reports on their progress toward providing such services.
FCC late Mon. said it approved Verizon’s Sec. 271 application to provide long distance service in Mass., making total of 5 states where former Bell companies can provide long distance service to their customers. Vote was 3-1, with Comr. Tristani dissenting. Agency said it applied same standard to Mass. that it had applied to last several long distance requests and determined that company had met Telecom Act’s 14-point checklist in Mass. “Each successful application makes the road map that much clearer,” said BellSouth, which plans to file Sec. 271 application soon for Ga.
FCC said it resolved 3 petitions for reconsideration of Communications Assistance for Law Enforcement Act (CALEA), proposing minor revisions in rules to clarify: (1) Arrangements telecom carriers subject to CALEA must make to ensure that law enforcement agencies can contact them when necessary. (2) Type of interception activity that triggers recordkeeping requirements. Order didn’t consider technical standards for compliance subject to remand from U.S. Appeals Court, D.C. Specifically, agency declined to adopt additional carrier personnel security measures proposed by FBI that would require carriers to conduct background checks of CALEA-designated employees and make detailed personal information available to law enforcement agencies (LEAs). Opponents of FBI proposals said existing rules adequately addressed personal security. FBI also asked carriers be required to generate automated message to permit LEAs to confirm periodically that interception software was working correctly and accessing correct subscriber. FCC ruled FBI hadn’t argued that surveillance status measures were “necessary to ensure systems security and integrity, as CALEA requires.” It declined to mandate automated surveillance status messages but said “there is nothing that would prevent carriers from providing this capability on a voluntary basis, or with compensations from LEAs.” FCC clarified requirements for recordkeeping to require carrier interception certifications to include “the start date and time the carrier enables the interception of communications or access to call-identifying information.” New language reflects FBI request to clarify event recorded is actual carrier action making interception to LEA, but doesn’t create new reporting requirements, Commission said. FBI asked for clarification of carrier responsibility for CALEA in resale situations. FCC said resellers as telecommunications carriers generally were subject to CALEA, but “in situations where a reseller doesn’t sell the services of a facilities-based carrier subject to CALEA, it can contract with its facilities provider or 3rd parties for CALEA assistance in the same way it contracts for any other network capabilities.” Finally, FCC denied National Telephone Co-op Assn. (NTCA) request to exempt small rural telcos from requirement to file with Commission policies and procedures used to comply with systems security rules and said “relief NTCA seeks is contrary to the statutory language.”
Several large wireless interests marshaled new research from economists to bolster arguments to FCC for relaxing spectrum cap, proposal that raised concern of some small carriers and largest wireless reseller WorldCom. In proposed rulemaking earlier this year (CD Jan 23 p1), FCC reopened examination of whether spectrum cap and cellular cross-interest rule for commercial mobile radio service (CMRS) providers still were needed. Spectrum aggregation limits are 45 MHz in most markets, except rural areas, where cap is 55 MHz. In comments to date, CTIA, Sprint PCS and Verizon Wireless presented economic data to show how wireless competition had grown, although Sprint’s numbers indicated largest markets “remain concentrated.” As for cross-ownership rules, Verizon wrote: “Duopoly market structure -- the entire premise for this rule -- of course is gone.”
FCC released order that adopted, with few changes, rulemaking that made way for advanced digital communications in 117.975-137 MHz and implements flight information services (FIS) in 136-137 MHz. Order: (1) Allows FAA to use 5 additional channels in 136- 136.475 MHz. (2) Authorizes implementation of flight information services in 136-137 MHz. (3) Accommodates digital communications systems in 117.975-137 MHz aeronautical radio spectrum. (4) Says 5 channels previously set aside for special purpose aeronautical en route operations in Gulf of Mexico no longer were reserved and could be licensed for general purpose aeronautical en route operations. “These rule amendments will enhance the safety of aviation by alleviating spectrum congestion in the aeronautical radio frequency bands and by paving the way for the introduction of FIS and other new digital communications services,” order said. Commission adopted order April 5 and released it Fri. Order stems from petition for rulemaking filed by Small Aircraft Manufacturers Assn., which wanted aviation rules revised so digital data transmission could be used and 4 channels could be designated for new Flight Information Services. Those services are delivered to cockpit through digital data link that provides flight information, including weather and advisories through data rather than voice transmissions. Services are meant to work with, rather than replace, voice communications offering same information. FCC retained existing allocation of 136-137 MHz and gave FAA access to 5 channels formerly held in reserve.
Staff of Ark. PSC recommended agency endorse SBC Sec. 271 entry into $175 million Ark. interLATA long distance market. PSC will hold hearing April 20 on carrier’s petition. PSC in Dec. found SBC satisfied most of Sec. 271 checklist, but hadn’t met requirements on wholesale rates and terms for competitors or for presence of actual residential local competitors. PSC staff said SBC long distance entry would benefit Ark. consumers and carrier would satisfy Telecom Act rate and term requirement if it offered competitors what it had made available in 3 states where SBC already had approval. Staff said Ark. would meet requirement for actual residential competition because Navigator Telecom of N. Little Rock had 3,400 residential customers in state, even though it wasn’t advertising. SBC already has long distance approval from FCC for Tex., Okla., Kan., and last week filed with Commission for long distance authority in Mo.
Research firm Strategis Group projected in report on 3rd generation wireless services that General Packet Radio Services, Enhanced Data for Global Evolution and 1x version of CDMA would comprise 50% of U.S. wireless market in 2007. Voice and other services would provide 35% and Wideband CDMA and 1X EV CDMA 15%, group said. “The need for carriers and manufacturers to plan deployments means that the FCC has to determine which frequency bands will be allocated, when they will be allocated and when they will be clear of present encumbrances,” Strategis Group senior analyst Adam Guy said.
Majority of satellite companies backed FCC proposals to streamline rules and eliminate restraints on applicants for earth station and space station licenses. Agency rulemaking also recommended 15-year extended license period, faster processing of temporary fixed station applications, electronic filing of applications, modification and relaxation of some technical rules, eliminating or reducing power and power density limits along with changes for very small aperture terminals (VSATs). At least 12 companies filed comments, including Aloha Networks, Astrolink International, GE Americom, Globalstar, Hughes, Loral, New Skies, PanAmSat, Spacenet, Starband, Telesat, WorldCom.
Panel of U.S. Appeals Court, D.C., judges seemed to have mixed views after hearing arguments Fri. about legality of FCC rule that exempts certain advanced services from Telecom Act requirement that ILECs must offer resale discounts to CLECs. Association of Communications Enterprises (ASCENT), representing CLECs, asked court to review decision by FCC last year that said ILECs didn’t have to offer discounts if CLECs planned to resell those advanced services to ISPs for use as part of ISPs’ service offerings.