FCC Wireless Bureau asked for comments on Cingular Wireless request for waiver of spectrum cap, seeking exclusion of cap for up to 1.5 MHz of 900 MHz specialized mobile radio spectrum. Spectrum at issue is held by its subsidiary Cingular Interactive. Comments are due April 3, replies April 13. Cingular argued that spectrum it wanted excluded from cap was well below recognized amount of spectrum needed to compete in commercial mobile radio services (CMRS) market and was used only in conjunction with separate national mobile data market that couldn’t be used for broadband services. Cingular said spectrum was used to compete against narrowband competitors that weren’t covered by CMRS cap of 45 MHz in markets, except for rural areas where it was 55 MHz. Cingular told FCC that waiver would permit it in nonrural markets in which it already had 25 MHz of cellular spectrum to obtain 2nd 10 MHz broadband PCS license without topping spectrum cap.
FCC gave Verizon pricing flexibility for special access services in 43 markets and 3 states. Action enables company to offer dedicated point-to-point service to large businesses and long distance carriers based on market prices rather than rates set by regulation. Verizon said FCC order, issued Wed., gave company more complete “Phase 2” flexibility for state of Del. and 10 other markets such as Norfolk, Va., Reading, Pa., Charleston, W.Va. Phase 2 flexibility lets companies offer service freed of rate and price cap rules although ILECs must file “generally available tariffs” on one day’s notice. Partial “Phase 1” flexibility was granted in 33 remaining markets plus Md. and Vt. Those with Phase 1 flexibility cover host of large cities such as N.Y.C., L.A. (in ex-GTE territory), Philadelphia, Boston, Washington. Companies with Phase 1 flexibility still must file contract tariffs and term discounts but need do so only on one day’s notice. They also must continue offering price cap- constrained tariffed rates for those services. FCC made determination based on whether there was adequate competition in markets. “Competition in the special services market is fierce, with dozens of companies in the hunt,” Verizon Senior Vp Thomas Tauke said. FCC also granted pricing flexibility to SBC for special access and dedicated transport services in 41 markets. In 13 markets, such as Flint, Mich. and Green Bay, Wis., SBC gained Phase 1 flexibility. In 28 markets, including San Francisco, Dallas, Houston and Indianapolis, FCC offered Phase 2 flexibility.
FCC denied complaint filed by Total Telecommunications Services (Total) and Atlas Telephone against AT&T. Commission said provisions of Communications Act cited by Total and Atlas didn’t prohibit AT&T from refusing to purchase terminating access services from Total or from blocking calls from AT&T customers to sole end-user customer to which Total terminated traffic. Agency then granted AT&T’s claim that 2 companies engaged in “unreasonable scheme to inflate the access fees charged to AT&T.” FCC concluded that Atlas created Total “as a sham entity designed to impose increased access charges on calls made to Audiobridge,” Total’s only customer. Audiobridge provides customers multiple voice-bridging service commonly known as chat-line service.
FCC granted petition of W.Va. PSC for waiver of calendar year 2001 state certification requirements for high-cost universal service support in areas served by non-rural carriers. Waiver will enable Verizon to receive federal high-cost universal service support. FCC said waiver was given to ensure consumers in those high-cost areas were not harmed by W.Va. Commission’s failure to timely file required certifications before Oct. 1, 2000. PSC “inadvertently” filed certification information Oct. 23, missing deadline.
As expected, VoiceStream shareholders approved proposed merger agreements with Deutsche Telekom (DT) and DT and Powertel. In separate meeting, Powertel shareholders also approved transactions. Merger agreements still await approvals by FCC and Committee on Foreign Investment in U.S. Separately, VoiceStream and DT submitted ex parte filing to FCC rebutting some of foreign ownership concerns raised by ranking Senate Commerce Committee Democrat Hollings (S.C.) (CD March 8 p8). They cited Hollings’s argument that Sec. 310(a) of Communications Act should apply to merger. Companies said that section applies to radio licenses held directly by foreign govt., but doesn’t bar foreign govt. from obtaining indirect control over common carrier license. (German govt. now owns 59% of DT, but that level will be diluted after merger is completed). Sec. 310(b), which companies said should be applied to their merger, applies when foreign govt. owns interest of more than 25% of capital stock of corporation that controls U.S. subsidiary, filing said. “Indeed, the Commission could not have granted the merger applications filed by AirTouch and Vodafone, or British Telecom and MCI, if Senator Hollings’s interpretation of Sec. 310 were correct,” companies wrote.
CWA called for full FCC audit of AT&T Broadband’s cable franchises for alleged violations of agency’s public disclosure rules. Union said it found in preliminary survey of dozen AT&T franchise locations that company management had refused public access to records; didn’t make files available to public; maintained incomplete and outdated information. CWA told FCC that “especially troubling is the failure of AT&T franchises to maintain complete signal leakage logs and proof-of-performance records” that would demonstrate compliance with Commission’s technical standards for cable operators. Audit is needed to ensure compliance with those rules and technical standards, it said. Union said Commission also should levy financial penalty “commensurate with the record of violation of these rules.”
FCC Office of Engineering & Technology plans public forum to discuss “technical challenges” related to competitive access to fiber-fed transmission facilities between central offices and end users in next-generation networks. Agency said action was follow- up to earlier forum that looked at ILEC efforts to deploy fiber closer to end users through use of remote terminals. Meeting will be in the FCC meeting room, March 29, 1-4 p.m.
Northpoint urged FCC to grant its affiliates’ license applications “without further delay” in comments filed Mon. in 12 GHz spectrum proceeding involving development and use of Multichannel Video Distribution and Data Services (MVDDS). “With competition and digital services lacking throughout the country, the FCC should act now and allow us to start providing needed service” in U.S., Northpoint CEO Sophia Collier said. However, Satellite Bcstg. & Communications Assn (SBCA) is fighting to keep terrestrial services out of 12.2-12.7 GHz because of concerns of interference.
Commercial broadcasters and their lawyers who sat through seminar last week at FCC on upcoming auctions of FM frequencies were said to be “outraged” when Commission announced auction’s postponement just few minutes before nearly 5-hour session ended (CD March 9 p8). About 50 minority potential bidders, on other hand, were “elated” by delay, according to spokesman-attorney David Honig. New date for auction is Dec. 5 (postponed from May 9), with first payments to participate now due Sept. 24.
FCC proposed $1,020,000 fine against America’s Tele-Network (ATNC) Tues. for apparent violations of Commission rules against slamming. FCC staff determined that ATNC apparently was liable for fine of $40,000 for each of 17 alleged violations, for total of $680,000. Violations arose from 16 consumer complaints that FCC investigated out of more than 260 received. Commission further determined that due to apparent pattern of intentional and egregious misconduct, fine should be increased 50%. ATNC has 30 days to either pay proposed fine or show why it should be reduced. ATNC is nationwide reseller of long distance services, based in Roswell, Ga. FCC order cited numerous examples of misleading ATNC encounters with consumers. In one case, consumer said telemarketer called her, said she was with AT&T and wanted to correct overbilling problem. Telemarketer asked consumer to “confirm” her name, address and birthdate before company would send check to cover overbilling. ATNC later used that confirmation as proof that consumer wanted to subscribe to ATNC, FCC said. “The evidence before us indicates that ATNC has apparently willfully and repeatedly changed consumers’ preferred telecommunications providers without their consent.” agency’s order said.