Beating down latest VoiceStream-Deutsche Telekom rumor, FCC Comr. Tristani took unusual step Wed. of issuing statement disavowing forged correspondence between herself and Sen. Hollings (D-S.C.) on slowing down pending merger. Pair of faked letters began circulating widely in Washington Tues., including one purportedly from Hollings asking Commission to defer acting on transaction until he had chance to introduce bill clarifying Sec. 310 of Communications Act. Agency spokesman said issue has been handed over to FCC Inspector Gen. for review. Hollings aide dismissed letter as hoax. Although Tristani said she didn’t typically comment on pending mergers, she said neither she nor staff members had corresponded with Hollings on deal. FCC faces self-imposed deadline of April 8 to act on proposal within 180 days after it was filed. “I am deeply troubled that the Commission’s process is being used for deceitful purposes, and I have asked the Chairman to initiate a full investigation of this matter and to refer it to other federal agencies as appropriate,” Tristani said.
Rather than moving immediately to subsidize advanced services as part of universal service program, FCC ought to form task force to determine “how and when” such services should be added, group of telecom experts will recommend in report to be issued today (April 5). Some 50 people, assembled by Consumer Energy Council of America (CECA), spent 6 months studying ways to improve universal service. Group decided that program was “vital to the social wellbeing of all Americans” and should be continued, but it stopped short of recommending expansion without more study. Instead it said Technology Task Force (TTF) should be formed to advise FCC and Federal-State Joint Board on Universal Service. Task force would be composed of “broad balance of stakeholders” to offer variety of viewpoints and would monitor development of advanced services on more continuous basis than is done now, CECA group recommended. Group, which is chaired by former White House and FCC official Kathleen Wallman, also recommended: (1) “Model state programs” for distributing low income support. (2) Better ways of publicizing low income support programs. (3) Streamlined process for gaining certification as eligible telecom carrier (ETC). State and federal regulators could work together to improve ETC process, CECA group said, using input from states that already have made improvements. (4) Program, coordinated by Universal Service Fund, to encourage deployment of advanced services through efforts of federal, state and local govts.
Assn. of Communications Enterprises (ASCENT), along with 35 competitive telephone companies, urged FCC to lift restriction on use of unbundled local switching (ULS) in top markets. In letter sent Wed., group said restriction should be raised from 3-line threshold to full DS-1 level. Limiting ULS to customers with no more than 3 lines “virtually denies all but a very few… CLECs the ability to service customers, particularly small businesses, in the largest urban markets,” group said.
House Commerce Committee ranking Democrat Dingell (Mich.) said his soon-to-be-reintroduced broadband deregulatory bill “will confer benefits on the baby Bells,” as critics of interLATA data relief legislation often claim. But similar version, then numbered as HR-2420, last year co-sponsored by Committee Chmn. Tauzin (R-La.), “also confers benefits on the public at large and it confers benefits on other segments of industry,” he said Wed. at seminar in Washington sponsored by Quello Center for Telecom Management and Law Review of Mich. State U.-Detroit College of Law.
And now there’s just one of Big 4 TV networks retaining membership in NAB, as CBS announced its withdrawal Wed. afternoon over Assn.’s continued support of FCC’s 35% TV station ownership cap. NBC and Fox withdrew more than year ago over same issue, while Disney’s Preston Padden said ABC planned to remain NAB member (CD March 28 p7). CBS acted after NAB TV board held conference call Tues. morning and refused to rescind its support of cap -- position that led NBC Pres. Robert Wright to charge that NAB had been “captured” by group-owned “publishers” (CD April 2 p2). In 2-paragraph announcement, CBS said: “We have been proud NAB members for many years, but it has recently become clear that we have a fundamental issue on which we and certain of the NAB’s television members disagree… It has now become clear that we cannot remain within an organization that is working actively against [CBS’s] objectives.” In pulling out of NAB, CBS also took along Infinity Bcstg. and its 170 radio stations, saying: “CBS and Infinity will continue to work with others in the industry” to protect free, over-air broadcasting. In statement, NAB said simply: “It is regrettable when any member leaves the Association.” ALTV Pres. James Hedlund was more outspoken. “I am very saddened” by CBS-Infinity pullout, he said. “With all of our challenges, now is the time to stick together and present the Congress and the FCC with a unified front. ALTV strongly supports the NAB and hopes that all of us in the industry can find ways to mend our internal fences.”
Ultra wideband (UWB) developer Fantasma Networks told FCC Tues. it should bifurcate UWB rulemaking between devices that operate in GPS bands and those operating elsewhere in spectrum. Fantasma responded to broad group of wireless, GPS, satellite radio and air transport interests that urged FCC last week (CD March 28 p1) not to take final action on operation of UWB equipment under Part 15 rules without issuing further proposed rulemaking (NPRM) first. Fantasma, whose technology operates in non-GPS bands, urged FCC to split off non-GPS and GPS parts of proceeding and “move now to authorize UWB technologies that do not operate on GPS frequencies.” Group wrote FCC Chmn. Powell that further NPRM didn’t contain specific enough regulatory language for agency to move directly to final rule without providing additional time for comment. Fantasma said coalition letter “greatly overstates the requirements” of Administrative Procedure Act. “Virtually every aspect of UWB technical operation outside the GPS frequencies, interference characteristics and service potential has been posited, argued and counter-argued exhaustively,” Fantasma said. It sought further NPRM for all UWB technologies, making no distinction based on bands where devices operate, company said. Letter appeared to be “dedicated to delaying the introduction of all UWB technologies, even though the impetus and logic of the ex parte letter applies only to UWB technologies that would operate on GPS frequencies,” Fantasma wrote.
Satellite Bcstg. & Communications Assn. (SBCA) won round in must-carry lawsuit with federal govt. Mon. Fourth U.S. Appeals Court, Richmond, rejected petition by U.S., NAB and others to stay constitutional challenge to FCC’s must-carry rulemaking filed by SBCA and EchoStar. U.S. and NAB had asked court to delay hearing on appeal until after FCC ruled on several petitions for reconsideration filed against must-carry regulations. In addition, U.S. wanted challenge continued until after U.S. Dist. Court, Alexandria, Va., ruled on challenge to must-carry rules brought by SBCA, EchoStar and DirecTV Sept. 20. SBCA Pres. Charles Hewitt called it “significant victory” for satellite consumers, saying decision “brings us one step closer to resolving this contentious issue.”
Bipartisan group of 5 senators urged FCC Chmn. Powell to reject interpretation of Sec. 310(a) of Communications Act that Sen. Hollings (D-S.C.) has backed for evaluating proposed VoiceStream-Deutsche Telekom merger. Without naming Hollings, senators referred to requests agency has received to interpret Sec. 310(a) to bar telecom carrier with substantial govt. ownership from indirectly owning U.S. wireless licensee. Sens. Smith (R-Ore.), Lugar (R-Ind.), Cantwell (D-Wash.), Brownback (R- Kan.) and Murray (D-Wash.) signed letter. “In our view, such an interpretation of the law would place the United States in direct violation of its commitments under the World Trade Organization (WTO) agreement on basic telecommunications and the General Agreement on Trade in Services,” senators wrote to Powell. “We believe it is crucial that the FCC not back away from or undermine from or undermine that agreement.” WTO commitments obligate U.S. to not bar foreign telecom companies, including foreign govt.- backed carriers, from entering U.S. market or obtaining controlling interest in U.S. wireless licenses, senators wrote. Hollings’s interpretation of Sec. 310 and how it applies to DT- VoiceStream deal has become touchstone of ex parte filings at FCC on pending merger. He has argued that Sec. 310(a) supersedes Sec. 310(b) of Communications At in cases in which foreign govt. has indirect control of radio licensee, barring approval of indirect foreign govt. interest that confers control of U.S. license. VoiceStream and Deutsche Telekom wrote FCC Comr. Tristani Mon., contending that if Hollings’s interpretation had been followed, Commission wouldn’t have approved Vodafone AirTouch merger or Vodafone-Verizon wireless venture.
American Cable Assn. (ACA) representatives met with FCC Cable Bureau staffers recently to press their case for no open access mandates on smaller cable operators. In March 27 ex parte filing in Commission’s open access inquiry, ACA officials argued that “administrative burdens and costs of regulated open access combined with regulated rates would threaten the viability of offering these services” because of thin margins for high-speed data services in smaller markets. They also contended that connection costs from headend to Internet backbone could “result in unattractive, even negative rates of return for ISPs in smaller markets. They cited as example case of Millennium Digital Media, smaller MSO that provides simple Internet connectivity via cable modems with no start page or other content services, unlike its bigger counterparts.
FCC Common Carrier Bureau released report, Trends in International Telecommunications Industry, consisting of 29 statistical tables tracing trends in U.S.-international telecom industry. Tables contain information on international traffic, circuits, pricing and accounting rates taken from carrier tariffs, accounting rate agreements and annual statistic reporting such as international traffic data and circuit status reports. Among FCC statistical findings: (1) Average revenue billed per minute of international telephone service declined to 53 cents in 1999 from $1.34 in 1980, while number of U.S. billed minutes climbed to 28.4 billion from 1.6 billion in same period. (2) Private line revenue, while small percentage of total international long- distance services, grew rapidly in recent years to $1.2 billion in 1999 from $500 million in 1995. (3) In 1975, international telephone service was less than 5% of U.S. carrier long-distance revenues; by 1995 it had grown to 19% of overall toll revenue, then dropped to 18% in 1997 and 17% in 1999. Report said relative amount of international toll revenue was declining due to significant price reductions for international calling -- www.fcc.gov/ccb/stats (file name ITRND00.ZIP or ITRN00.PDF).