XM Satellite Radio received FCC authorization to modify satellite. Authorization will allow XM to modify certain technical aspects of SDARS system in order to achieve 1/3 increase in system capacity and improve service, FCC said.
In future carrier networks, many OSS applications will communicate and cooperate through bus architecture, Telcordia executives said Thurs. at FCC Office of Engineering & Technology tutorial. “Today 5 [service] processes means 6 OSS vendors and 13 OSS applications,” Telcordia Chief Strategist for Operation Solutions Mike Swartz said. Rather than close coupling of processes in monolithic OSS suite, applications will be connected to one another only as needed through computer mediator or what Telcordia calls Common Clearinghouse. Shared architecture touted by company also creates opportunities for “off-the-shelf” OSS, thriving market Telcordia leads. Swartz said OSS was $20 billion market. Today, 25% is spent in-house by carriers, down from 50% in past. Future OSS must be fast, efficient and support diverse services, Telcordia Vp-Solutions Design Steve Cohen said: “Unlike old stable regulated markets, new service lead times are driven by competitive offers in the marketplace.”
Impediments to DTV transition may be “too great to overcome” without additional govt. intervention, Rep. Dingell (D-Mich.) said at House Telecom Subcommittee hearing Thurs. He said “under normal circumstances” it would be best to allow “unfettered marketplace” to determine outcome of transition, but private sector resolution of must-carry, copyright protection and technical standards issues were impeded by govt.-mandated 2006 transition deadline and return of analog spectrum, he said.
Consumers and small businesses would suffer if FCC limited use of unbundled network elements (UNEs) as some have requested, coalition of companies that use UNE platforms (UNE-P) said at news briefing Thurs. FCC is expected to act in 2 or 3 months on year- old petitions seeking elimination of switching from list of UNEs that Bell companies have to share with competitors. Such action in effect would eliminate UNE-Ps as options because switching is needed as part of platform. Result would be cutback in competition and less choice for consumers because UNE-P companies are more likely to serve residential and small business customers, said Joe Gillan, consultant for group, known as Promoting Active Competition Everywhere (PACE) coalition. He said coalition’s 9 member companies alone served 750,000 customers. MCG Capital CEO Bryan Mitchell said capital markets had turned to UNE-P companies as better risks because they promised faster cash flow than companies that had their own switches and transport facilities. Financial markets aren’t willing to wait as long for results from CLECs as they once did, Mitchell said. “Our enthusiasm [for facilities-based CLECs] has waned in a rather complete fashion,” he said. “People failed to consider the amount of money [needed to build] duplicative networks.” UNE-P entry “energizes capital markets,” he said. PACE members said at briefing that it wasn’t fair for opponents to paint UNE-P companies as riding on ILEC facilities rather than investing in their own equipment. They said all 9 PACE members had invested in facilities, just not necessarily transport facilities. For example, Z-Tel Network Services Pres. Robert Curtis said his company invests in high-tech software because it offers customers Web-based phone services. Peter Karoczkai, senior vp of InfoHighway Communications, said his company used UNE-P as part of broader mix of integrated services to small and midsized businesses. He said company had ATM switches, point-of-presence equipment and other facilities and was colocated in several ILEC central offices. PACE companies have more than $1.8 billion of invested capital in such areas as back office systems, software and advanced data services, group said. Eliminating UNE-P would cut back on deployment of advanced services and frustrate innovation, they said. UNE-P is one of “most misunderstood of telecommunications strategies,” Curtis said. He said there were 2 kinds of investment -- building new infrastructure or taking advantage of ILEC infrastructure and investing in innovative customer applications. PACE members criticized Allegiance Telecom and several other facilities-based CLECs for urging FCC to halt use of UNE-P as transport strategy. “Don’t be confused by their motive,” said PACE attorney Genny Morelli. “It’s a capitalist motive” to keep competitors out of market, she said. “I would ask Allegiance, what are you afraid of.” Petitions seeking restrictions on use of UNE switching were filed by ILECs, primarily, although Allegiance, Time Warner Telecom and XO had lent support to movement, PACE members said.
FCC sought comment on application by Business Telecom (BTI) and Welsh, Carson, Anderson & Stowe VIII and WCAS Capital Partners (WCAS entities) requesting Commission approval of indirect, de facto transfer of control of BTI blanket domestic Sec. 214 authority to WCAS. Request is part of transaction in which WCAS entities would acquire de facto control of BTI parent company BTI Telecom. Despite change of parent, BTI would continue to service its customers under existing service arrangements. Comments are due March 27, replies April 3.
FCC Enforcement Bureau announced $88,000 fine against SBC Thurs. for violating reporting requirements imposed before agency’s approval of merger application of SBC and Ameritech. In merger order, FCC required SBC to file detailed monthly reports on its response to requests for facilities and services from rivals and end customers. Through independent auditor and underlying data from SBC monthly reports, Commission determined that carrier had used incorrect benchmarks and had excluded key data for up to 13 months.
James Lichtman promoted to senior litigation counsel, NBC… Edward Hill advanced to corporate dir.-imaging and format development, Citadel Communications… Kathleen Keefe, ex-Post- Newsweek Stations, becomes vp-sales, Hearst-Argyle TV… Christopher McLean, ex-U.S. Agriculture Dept. Rural Utilities Service administrator, named vp, national strategies and counsel, ComCare alliance… Jonathan Nuechterlien, ex-FCC, joins Wilmer, Cutler & Pickering as partner… Scott Ray, ex-BarterTrust, named exec. vp-CFO, OpenTV, replacing Randy Livingston, who moves to Stanford U… Clark Bunting, ex-Animal Planet, appointed exec. vp- gen. mgr., Discovery Channel, succeeding Michael Quattrone.
Differing filings with SEC and FCC on same proposed service by WildBlue (WB) Communications are being challenged by rival Pegasus. In FCC filing, Pegasus accused company of “willful misrepresentation” to gain “milestone deferrals” and valuable Ka- band spectrum allocation. WB said in 2000 SEC filing that it wouldn’t build satellite equipped with intersatellite links (ISLs), but in later FCC filing received milestone waivers for ISLs based on premise that satellites would have them.
AT&T said it was “encouraged” that FCC shortened lag time between carrier’s accrual of revenues and assessment of its Universal Service Fund (USF) contribution (CD March 15 p5). However, that won’t solve problem entirely, carrier said. AT&T said it looked forward to participating in FCC’s upcoming proceeding to consider ways to simplify entire USF cost recovery process and eliminate lag entirely.
WESTMINSTER, Colo. -- Looking beyond its limited technical and operational test of multiple-ISP choice in Boulder, Colo., AT&T Broadband plans to start larger marketing trial in Boulder in May and much bigger marketing trial in Boston area in fall. Speaking at CableLabs media briefing here Wed., AT&T Broadband Senior Vp Susan Marshall said MSO would test carriage of up to 10 ISPs in each market as it prepared for commercial rollout of service in major cable markets, starting in mid-2002. She said company also would test choice of transmission speeds and prices, as well as choice of various additional services. “We are very, very committed to this,” she said, saying that company had spent $20 million getting ready for its trial in nearby Boulder and was likely to spend another $20 million preparing for its Boston pilot.