Wireless carriers were split over how active FCC’s role should be in creating rules to protect privacy of location-based information of mobile customers. CTIA asked Commission last year for rulemaking to adopt proposed location information privacy principles, including notice, consent, security and integrity of consumer data. Association sought regulations to implement part of 1999 Wireless Communications & Public Safety Act. But largest U.S. mobile carrier Verizon Wireless told FCC in comments that while it supported 4 privacy principles proposed by CTIA, it didn’t believe new regulations were needed. Sprint PCS didn’t go quite so far, saying it supported adoption of principles via rule or policy statements but didn’t believe new, detailed regulations are needed. Cingular Wireless, Ericsson and Nokia largely supported CTIA petition for rulemaking. However, PCIA said FCC should examine issue, “but should be wary of adopting any new regulations that could suffocate exciting new technologies and services.”
FCC missed self-imposed April 8 deadline for making decision on VoiceStream-Deutsche Telekom merger, although decision reportedly is expected later this week or early next. It gave no reason for delay.
Despite current problems, residential and business DSL will be $5 billion business by 2005, vs. $1.8 billion today, New Paradigm Resources Group (NPRG) said in new report. Few competing technologies can provide last mile broadband connectivity and market will support DSL’s continued growth, report said. “The next generation of DSL providers will have a better handle on how to offer DSL services,” NPRG Senior Vp Craig Clausen said. “The provisioning of DSL proved much more difficult than initially thought: It was a 50-50 crap shoot whether a new customer would be within the distance limitation, and beyond that, it was another 50-50 chance that the customer would have a phone line with proper conditioning.” DSL business models also are flawed, he said. “Early DSL providers had no idea how to interface with and collect from the ISPs.” While report predicted next generation of DSL providers, including CLECs, would be profitable, Clausen said he expected little regulatory help for CLECs. “The most we'll see from the [FCC Chmn. Michael Powell] is some additional enforcement” of existing rules, he said; existing technology will need to improve to make current regulatory environment workable -- NPRG, 312-980-4796.
Rebecca Beynon, common carrier adviser to FCC Comr. Furchtgott-Roth, moves to Office of Management & Budget as asst. gen. counsel, succeeded by Samuel Feder, ex-Harris, Wiltshire & Grannis… Idaho PUC members elected Comr. Paul Kjellander to 2- year term as agency pres., succeeding Dennis Hansen, who remains PUC member… Charles Keller, ex-FCC Common Carrier Bureau, named partner, Wilkinson, Barker & Knauer… John Zeisler, independent investor, becomes gen. partner, Nokia Venture Partners.
FCC should reject Verizon’s application for long distance service in Mass. because company hasn’t met Sec. 271 checklist requirements, ALTS Pres. John Windhausen said in April 6 letter to agency. Deadline is April 16 for FCC to act on Verizon petition. Windhausen said Verizon’s “failure to comply with its market- opening obligations” had helped drive nearly all competitive DSL providers from Mass. market. Among deficiencies cited by letter: (1) Despite June 6, 2000, deadline, Verizon didn’t finish correcting splitter installation problems in its central offices until Feb. 15, making it unable to provide line sharing to competing providers until then. (2) Verizon hadn’t yet provided “preorder” operations support system (OSS) that included information whether loops could handle DSL. In interim, Verizon uses e-mail to send such information to competitors day after loop makeup request is submitted. That means competitors must wait a day to tell customers whether loops qualify for DSL while Verizon can tell customers instantly, Windhausen said.
Bush Administration’s fiscal year 2002 budget proposal would increase funds for FCC, but White House’s long term strategy is to level off agency’s spending over the next 4 years. According to govt. budget details released Mon., Bush would increase FCC’s FY 2002 budget to $248.5 million from current $230 million. Total proposed outlays, or “amount the [FCC] actually spends in a given fiscal year,” would increase to $320 million from $301 million. Spending in FY 2003 and 2004 would drop to $302 million, then increase by $1 million in FY 2005 and FY 2006, respectively, under plan.
BellSouth, SBC and Verizon together petitioned FCC April 5 to exclude high-capacity lines from Commission’s unbundling requirements. Requiring ILECs to offer high-capacity loops to CLECs at deep discounts no longer is necessary because there are plenty of companies offering such circuits, 3 companies said. If anything, unbundling requirement deters further development of facilities-based competition, they said in petition. At issue are circuits at DS-1 level or higher that are used by large businesses and institutions.
Primary factor in FCC decision whether broadcast material is indecent is “whether the material appears to pander or is used to titillate” or was “presented for its shock value,” FCC said in policy statement (FCC 01-90) on indecency. FCC Comr. Tristani predicted statement would become “how-to manual for those licensees who wish to tread the line drawn by our cases.” Comr. Ness said statement wouldn’t solve problem and urged broadcasters to reinstate voluntary code of conduct. Comr. Furchtgott-Roth said FCC should deregulate broadcast content entirely. NAB was still reviewing document at our deadline.
Underlying long distance companies will have to compensate payphone providers for coinless calls made by their resellers under FCC order released April 5. Order aims to ease payphone providers’ difficulty in collecting payment for calls handled by carriers that resell services of facilities-based long distance companies such as AT&T and WorldCom. Order also requires underlying carriers to track or arrange for tracking payphone calls to determine whether they are completed and thus subject to compensation. Resellers then would have to reimburse underlying facilities-based carrier for amount paid to payphone services as well as cost of tracking calls and making reports to payphone providers. American Public Communications Council (APCC) said it was “satisfied” with order because it clarified treatment of what were called “dial-around” calls, made with access code or toll- free number. FCC said 20%-50% of revenue for calls routed to switched-based resellers were uncollected. APCC said order was particularly important for consumers who didn’t have home phone because it would “keep payphones in place and continue to keep the cost of a payphone call competitive.” Order basically gives payment responsibility to “the first interexchange carrier to whom a dial-around call is routed from the local telephone company… rather than other carriers further down the chain that may not be accessible to the [payphone provider],” FCC said.
AT&T Wireless became latest carrier last week to seek waiver of FCC’s location accuracy requirements for Enhanced 911 Phase 2, seeking time to deploy handset-based technology through its GSM network and network-based solution for its TDMA customers. AT&T said its request was similar to conditional waiver for hybrid handset- and network-based solutions that agency granted to VoiceStream last fall. Request came at time that Cingular Wireless also appeared to be entertaining similar waiver request at FCC, although spokesman said Fri. that carrier hadn’t yet made decision. Groups representing public safety answering points that field 911 calls have objected to such waivers, raising concerns whether Commission’s upcoming deadline for E911 Phase 2 would be met.