FCC Comr. Ness criticized decision of long distance carriers to assess billing fee on consumers for combined local and long distance bill. Ness said in statement Thurs.: “I am particularly troubled -- as all consumers should be -- by reports that some carriers did not notify consumers in advance so that consumers could have avoided these charges.” She said FCC Enforcement Bureau should investigate whether line-item charges “are consistent with our truth-in-billing rules, unreasonable or unreasonably inflated.”
PanAmSat filed comments with FCC supporting liberalizing processing rules for earth stations with nonstandard antenna patterns. Company also agreed with Commission position on proposal to require submission of nonroutine antenna gain patterns with earth station applications and self-certification procedure for earth stations. PanAmSat also wants relaxation of earth station power density limits and proposal to permit operators of temporary fixed earth stations in Ku-band to begin operation before grant, but not until end of comment period provided no objections have been filed. Filing supported proposal to extend earth stations’ license term to 15 years, to allow multiple-hub stations under single VSAT network blanket license and to authorize temporary VSAT hub stations.
Edward Kientz, Benner-Nawman, moves up to chmn., Telecommunications Industry Assn. board, succeeding William Cadogan, term expiring, who remains as chmn. emeritus… Lauren (Pete) Belvin, ex-Wilkinson, Barker, Knauer and ex-FCC and Senate Commerce Committee, becomes head of Qwest’s Washington office as vp-federal policy & law… Kevin Krufky, ex-staffer for Senate Commerce Committee Chmn. McCain (R-Ariz.) on Communications Subcommittee, joins Sen. Brownback (R-Kan.) as legislative asst., duties to include telecom… Lee Hogan, ex-Reliant, elected to Crown Castle International board… Joining A.F. Assoc. from Whitlock Group: James Fitzpatrick as dir.-project development, Robert Timpone as senior engineering consultant… David Kagan, Verestar pres.-COO, moves to CEO, Maritime Telecommunications Network.
Sharp Corp. executives met recently with FCC Comr. Ness and legal adviser David Goodfriend to press for Commission action to spur retail availability of competitive digital cable set-top boxes. Brandishing market research report, Sharp officials said retail market for digital cable set-tops was not expected to develop before year-end, more than year after agency required cable industry to separate security functions from its digital boxes to promote their retail acceptance. Consumer electronics manufacturers generally want FCC to force cable industry to switch from proprietary set-tops to interoperable boxes by 2003 or sooner and to adopt open technical standards that don’t favor boxes produced by existing cable equipment manufacturers.
U.S. Bankruptcy Court, Newark, N.J., Wed. approved purchase agreement by Network Services of one-way paging assets of TSR Wireless. Judge Rosemary Gambardella also signed off on agreement under which Network Services will manage TSR assets until FCC issues final order transferring licenses to Network Services. TSR filed for Chapter 7 liquidation in Dec., laying off most of its 1,700 employees. TSR had provided pagers, cellular, PCS phones, 2-way radios through resellers, direct accounts and retail stores. Assets acquired by Network Services include local, regional and nationwide 900 MHz frequencies, 1,400 transmitters and telephony switches in 31 states. Transaction also includes subscriber base of TSR. “All TSR Wireless’ remaining employees will be retained,” said Brad Scott, Network Services pres. Initial goal of Network Services is to launch nationwide sales and marketing campaign, he said. Network Services provides paging and messaging services as well as local phone services in 3 states and over Internet.
FCC hopes to take action on CLEC access charges “in the very near future,” Common Carrier Bureau Chief Dorothy Attwood told rural telephone executives attending National Telephone Cooperative Assn.’s annual Legislative Conference Wed. Issue has been “incredibly hard” for FCC, she said. On one hand, CLECs depend on that revenue to finance expansion, she said, and on other hand, long distance companies can’t afford to pay high rates because competition is driving down their end-user rates. “The worst answer is not to resolve [it],” she told group, saying she was aware that some NTCA members had CLEC operations that could be affected by FCC decision.
FCC seeks comments by May 14 on notice of proposed rulemaking (NPRM) that starts process of tapping Ch. 52-59 in 700 MHz band for auction to wireless operators and other providers of advanced services. Reply comments are due June 4 for NPRM that Commission approved this month (CD March 19 p1). Item addresses lower channels in 700 MHz, which must be auctioned by Sept. 30, 2002, and are occupied now by broadcasters who face digital TV deadlines for leaving band. Broadcasters must vacate spectrum by 2006 unless certain service penetration criteria are met. Among issues on which proposal seeks comment are whether agency should consider ways to facilitate DTV transition ahead of deadlines to make spectrum available to successful bidders sooner. NPRM said possible applications for spectrum included mobile wireless, wireless local loop, video and multimedia. Proposal also would allow companies to obtain licenses in that spectrum to provide broadcast services, such as mobile TV. Comment is sought on “whether this broad allocation is appropriate.” FCC requested feedback on whether restrictions on allocation were needed to protect adjacent channel broadcast operations. As example, NPRM asked whether there was need for guard band or separate allocation at lower end of band limited to low-power service because TV channels would remain adjacent to band on Ch. 51. “Alternatively, would the 698-746 MHz band be more useful for fixed services than mobile services in light of the high number of incumbent broadcasters that operate on the spectrum?” On that point, proposal sought comment on whether “fixed services may be more successful than mobile services in structuring their systems to avoid interference with incumbent broadcasters.” Agency asked for comment on appropriate amount of spectrum for each license in 698- 746 MHz band, specifically whether it should be licensed as single 48 MHz block or in smaller increments.
Because of “events of the past several weeks,” CBS told its TV affiliates late Tues. that “it’s no longer possible for us to work effectively with the current affiliate advisory board.” In letter to affiliates and group heads, Peter Schruth, CBS pres. of affiliate relations, said “it’s quite evident… that for some time now the [affiliates'] advisory board has not performed its primary function, that is to advise… the network and the affiliate body.” Therefore, he said, CBS in future will work “with the entire affiliate body to reformulate an appropriate advisory group that will foster the kind of communication [between stations and network] we all have every right to expect and require.”
Ultra wideband (UWB) developers took exception Wed. to request by broad group of wireless, GPS, satellite radio and air transport interests that FCC issue further notice of proposed rulemaking on UWB before final rule. Group of 26 companies and trade associations sent letter late Tues. to FCC Chmn. Powell, contending it would be premature for agency to release final rule before putting out further notice that would allow for comment on research, specific regulatory language (CD March 28 p1). “We don’t believe there needs to be a further notice,” said Jeff Ross, vp-corporate development and strategy for UWB developer Time Domain. Process that Commission has undertaken so far to evaluate UWB technology has been “comprehensive” and has included more than 550 filings in docket on proceeding, Ross said. “It’s been an exhaustive record.” Request for further notice made this week “is just a tactic to delay,” Ross said. In part, Ross took exception to contention by groups that studies have yet to be completed, although he agreed NTIA has indicated there are several receivers it still must test as part of evaluation of UWB devices in GPS bands. He also disagreed with point made by groups that NPRM issued last May didn’t contain specific enough details on regulatory language to give interested parties adequate grounds to comment. NPRM addressed Part 15 power levels with specific spectral emission mask and addressed absolute and peak power levels. “I don’t see how that is inadequate notice,” he said. Washington attorney Henry Goldberg, who represents UWB developer Fantasma Networks, also called letter “delaying tactic,” although he said concerns related to testing in GPS bands are “reasonable.” Much less concern exists over UWB operations in non-GPS frequencies, he said. (Fantasma’s technology is designed to operate in non-GPS bands). One possible Commission response is to divide proceeding between UWB operations in GPS and non-GPS spectrum, so that operations of companies using bands in latter group wouldn’t be complicated by GPS-related concerns, Goldberg said.
Rumored sale of GE Americom to SES Astra of Luxembourg was announced Wed. at Grand Hyatt Hotel at Satellite 2001 (CD March 7 p5). Companies said newly formed SES Global acquired total control of GE Americom stock and other assets for $2.7 billion in cash and 15.4 million shares in SES Global. Analysts estimated total value of deal at $5 billion. GE will have 25.1% economic interest and 20.1% voting interest in SES Global. In return, SES Global will acquire SES Astra in 1-to-1 exchange involving cash and stock swap worth $1.4 billion. GE Americom had revenue of $510 million last year. Combined assets of companies will create world’s largest satellite services provider with pro forma revenue of $1.26 billion for 2000, analysts said. It’s 2nd sale in as many days of major U.S. satellite operator as consolidation of industry continues.