S.D. PUC Comr. Laska Schoenfelder (R), 63, died Wed. of cancer. She was first elected to PUC in 1988 and last Nov. was elected to her 3rd six-year term. Earlier, she held positions with S.D. local and state govt. agencies. She had been member of NARUC’s Telecom Committee since 1991 and was one of 4 state members on Federal-State Joint Board on Separations. FCC Chmn. Powell said FCC was “grieved” to hear Schoenfelder had died. “I considered her a great public servant and an invaluable asset to the nation in our implementation of the [Telecom Act] and particularly… universal service,” he said. Survivors include husband, 5 children.
LAS VEGAS -- FTC Comr. Orson Swindle urged wireless industry at CTIA Wireless 2001 show here to focus on self-regulation for protecting consumers’ location-based information, saying that could stave off congressional action. “If you're going to wait around and not deal with a critical issue, then government is probably going to turn around and do something and I don’t think that’s the best solution,” said Swindle, who lauded CTIA petition to FCC that proposed principles for protecting privacy of location-based information. He warned of “incredible harm if we do it the wrong way, especially if we rush into it screaming ‘Oh, my God, Henny Penny, the sky is falling’ before we even understand the business models we are dealing with.”
Communications lawyers on Washington Legal Foundation panel on FCC and Communications Policy split 2-2 on whether major revamp of FCC is needed immediately. “It’s hard to disagree about the need to overhaul the FCC,” according to attorney Nick Allard of Latham & Watkins. Moderator and former FCC Chmn. Richard Wiley did disagree, sharply, with Allard -- who called for abolishing 4 of 5 commission seats and actively involving Commerce Dept. and NTIA in regulation of various communications industries. What FCC needs, countered Wiley, is more delegation of authority to staff and more rapid decisions -- something that can be accomplished with present structure -- and “Chmn. Powell can get it done.” Because of Congressional respect for Powell, any agency reform “is going to come first from the FCC itself,” rather than from Hill, Wiley predicted. Panelist Charles Kennedy of Morrison & Foerster generally agreed with Allard, while David Poe of LeBoeuf, Lamb, Greene & MacRae partly sided with Wiley. Commission doesn’t need revamping for short term, Poe said, but major overhaul may be necessary in long term. Kennedy said FCC operations were “outmoded… We are going to have to make some fundamental changes… if things don’t turn around.” Allard listed 10 questions that must be answered on FCC’s future, including whether competition was prerequisite for deregulation or was it other way around and did Commission’s current organizational structure make sense. Poe said Powell had shown “he’s not afraid to grapple” with tough issues and that there are many “ambiguities and contradictions” in 1996 Telecom Act. “Statutory reform” of FCC is needed, he said, but it will be very hard to get Congress to pass legislation on issue. On digital TV, Poe said FCC had tried to push broadcasters into new technology but “you can’t make a market if the market isn’t there.”
FCC denied petition of GTE Hawaiian Tel International (GTE Hawaiian) to waive Commission’s International Settlements Policy (ISP) to change accounting rate for switched voice service to Vietnam. Agency earlier had suspended modification request because foreign carrier in Vietnam, Vietnam Telecom International (VTI), offered higher accounting rate at later effective date to GTE Hawaiian than one negotiated with other U.S. carriers. Because result would be significant disparity in accounting rates among U.S. carriers, VTI’s refusal to negotiate comparable terms and conditions for service on U.S.-Vietnam route violates ISP, FCC said. Commission directed GTE Hawaiian to renegotiate nondiscriminatory agreement with VTI and to settle on interim basis at lowest rate VTI had negotiated with other U.S. carriers. VTI previously entered into agreements with AT&T, MCI WorldCom, Sprint.
Rep. Weiner (D-N.Y.) said he soon would introduce legislation that would require the FCC to collect service quality data on and draft minimum quality standards for wireless communications industry. Standards would govern connection, reception and billing practices. Bill also would establish toll-free “#FCC” complaint hotline number and complaint mailing address that wireless carriers would be required to include in each subscriber’s bill and would require FCC every 6 months to submit report to Congress on complaints received.
IRS gave its blessing to News Corp.’s planned purchase of broadcaster Chris-Craft Industries and 2 related companies, issuing favorable tax ruling on deal Wed. Ruling allows purchase to proceed as tax-free transaction for stockholders of Chris- Craft, BHC Communications, United Television (UTV). But deal, which calls for News Corp. to buy 3 companies and 10 major-market TV stations that they control, still needs approvals from stockholders, FCC, others. Chris-Craft, BHC and UTV have scheduled separate stockholder votes for April 24.
LAS VEGAS -- As U.S. carriers eye FCC deadline this fall for Enhanced 911 Phase 2 services, wireless industry still is grappling with finer points of which location-based services will provide best return on investment, how privacy will be guarded and how ads will be delivered, panelists said at CTIA Wireless 2001 here Tues. “The real challenge is getting handset prices down to where they need to be,” said Tom Wrappe, SnapTrack vp-product and program management. But as technological advances drive down costs, he said, “you will see this does go mass market in the next year or year and a half.”
New Networks Institute filed complaints with N.Y. PSC and N.Y. Attorney Gen.’s office seeking property audits of Verizon assets. Group charged Verizon was recovering costs from ratepayers on more than $600 million in N.Y. “vaporware,” equipment and assets that either didn’t exist or couldn’t be verified. Group said evidence for its complaint was taken from FCC 1998 audits of Bell and GTE operating company property records that found $5 billion in missing equipment and $14 billion in unverifiable assets. Group said FCC didn’t take action but left matter to states. Group said it would be filing similar petitions in other Verizon states and with state commissions in other Bell regions, plus petitions to IRS to explore federal tax consequences of alleged vaporware.
LAS VEGAS -- Key to wireless Internet success is “total package” of consumer value, not whether system is wide area protocol (WAP) based or i-mode or any other technology, said Takeshi Natsuno, exec. dir.-gateway business for NTT DoCoMo. NTT already has 21 million wireless Internet users in Japan, generating average of $20 revenue (plus voice fees) per month, with more than 800 companies providing more than 40,000 Web sites of Internet content adapted for wireless devices, he told CTIA convention here. Despite talk of delivery modes, other speakers agreed content was key for new service.
Qwest Communications is looking at enforcement options following AT&T’s rejection of its request for “equal access” to latter’s cable networks in Colo. and Wash., Qwest Senior Vp-Policy & Law Steven Davis told us. Citing 9th U.S. Appeals Court, San Francisco, ruling that cable-delivered Internet access was telecom offering, Qwest in Dec. had sought interconnection with AT&T equipment and transmission facilities that underlay its cable modem services (CD Dec 18 p3). Qwest had been told by AT&T’s regulatory lawyers that it wouldn’t be possible to comply with request, Davis said. Enforcement options being considered include state PUCs and FCC, he said. Legal action is another but slower option. Qwest’s seeking equal access to underlying transport facility had nothing to do with AT&T ISP choice trial in Boulder, Colo., which was open access trial. Qwest spurned offer to participate there. AT&T spokesman said there was “no provision of law or regulation” that required company to comply with Qwest’s request. He said AT&T was interested in talks on commercial arrangement and wanted Qwest to become part of Boulder trial.