FCC late Wed. announced it wanted to “update and refresh” its record on Computer 3 requirements for dominant carriers and asked for new comment on issues it raised in Jan. 1998 proposed rulemaking. Agency asked for comment on variety of issues such as “any developments in the ISP market since 1998 that the Commission should consider in reexamining the effectiveness of [Computer 3 and Open Network Architecture (ONA)] requirements.” Agency asked whether ISPs still relied on ONA framework to get DSL services from Bell companies. “If ISPs use means other than ONA to acquire DSL service, commenters should identify such alternatives and discuss whether they offer a more effective and efficient approach for obtaining required services,” FCC said. Agency also asked whether: (1) There was way to make any safeguards it adopted more “self-enforcing.” (2) Unbundling requirements for ILECs under Telecom Act would ease concerns expressed in 1994 by 9th U.S. Appeals Court, San Francisco, about effectiveness of nonstructural safeguards set up in earlier ONA proceeding. Agency said comments would be due 30 days after publication of notice in Federal Register, with replies due 15 days later.
Several panelists at Credit Suisse First Boston (CSFB) conference Wed. in N.Y. said upcoming FCC order on reciprocal compensation payments would provide early sign of agency’s commitment to rely on market forces under Chmn. Powell. Verizon Senior Vp-Public Policy Thomas Tauke said work on reciprocal compensation order was likely to wrap up in next 30 days. “We are going to have a transition away from it, which will save us substantial amounts of money this year and next year,” he said. Tauke and others said they expected Commission to look at broader issue of intercarrier compensation shortly. He said there was “80% chance” that FCC would undertake some streamlining of Sec. 271 long distance application process, with 50-50 chance that changes would be “significant.”
Correction: In its recent ex parte presentation to FCC on cable open access issue, Comcast stressed, rather than complained about, its new service advances and increased competition that it faced from DBS providers and cable overbuilders (CD March 7 p9).
FCC Office of Engineering & Technology plans tutorial on operating support systems (OSS) at 9:30 a.m. March 15 at FCC meeting room. Representatives of Telcordia and Interconnection Solutions will discuss how OSS systems function and how they will evolve. -- (Kent Nilsson, 202-418-0845).
FCC asked for comments on state of Alaska’s request to use e- rate funding to support community projects beyond traditional school and library uses. State asked for waiver to let others in community use e-rate funded dial-up Internet access if no access was available elsewhere in community and outside use was limited to when schools and libraries were closed. Comments are due April 6, replies May 7.
Ranking Democrats on Senate and House Commerce Committees warned FCC Chmn. Powell that Deutsche Telekom (DT) was controlled by German govt. and was ineligible for U.S. telecom licenses as part of pending VoiceStream merger. Ranking Democrat Hollings (S.C.), who repeatedly has voiced concerns about foreign ownership aspects of deal, and his House counterpart Dingell (Mich.) told Powell they “noted with interest” his desire to return agency to “a less activist agenda.” They wrote in letter sent March 6: “With the Commission’s upcoming decision on the DT-VoiceStream merger, the FCC will have a concrete opportunity to demonstrate this philosophy.” They cited recent press reports that DT Chmn. Ron Sommer faced mounting pressure, including from members of Germany’s parliament, to resign in face of company’s falling stock prices. Hollings and Dingell referred to comment by Germany Finance Ministry spokesman that agency was backing Sommer. They also cited congratulations from German Chancellor Gerhard Schroeder to Sommer on “setting up the company well both domestically and abroad.” Such “competing statements of concern and confidence” more typically are issued by private sector board members and not govt. officials, Hollings and Dingell told Powell. They also ticked off parts of merger record before FCC that they said pointed to German govt. control of DT -- govt. ownership stake, “large amount of debt” DT holds that is backed by govt., number of govt. employees working for DT who are statutorily protected under German law. “The Commission’s foreign participation order (FPO) was based on a Clinton Administration initiative that was neither submitted to, nor approved by, Congress,” Hollings and Dingell wrote. “To approve a transaction by relying on the FPO and the underlying executive agreement without congressional approval would be the height of agency activism.” Meanwhile, VoiceStream Vice Chmn. Donald Guthrie expressed confidence at Credit Suisse First Boston conference in N.Y. Wed. that merger would receive FCC approval around mid-April. “Chairman Powell has stressed the need to be timely,” he said. “We believe that that time frame is certainly a reasonable time frame.” Merger is on track to close in early June, with Guthrie saying he expected regulatory approvals before then.
Telemundo Network faces $7,000 FCC fine for delivering programming to XHAS-TV Tijuana without valid authorization, Enforcement Bureau said. Telemundo’s 5-year permit expired Sept. 1, but network continued to deliver programming for nearly 3 months, Bureau said.
Sen. Burns (R-Mont.) said he would push appointment of Mont. PSC Comr. Bob Rowe to FCC, although he admitted other members, notably Sen. Hollings (D-S.C.), had other candidates in mind. “We're going to try to do something with [Rowe],” Burns said Wed. at OPASTCO conference in Washington. He also addressed what he said was mixed effectiveness of Telecom Act, and wouldn’t rule out possibility of rewrite: “It has worked very well, [but] in some areas it has not. Will we have to open it up down the road? Maybe so.”
Local branch of NAACP asked U.S. Appeals Court, D.C., to overturn FCC decision renewing license of WWSB-TV Sarasota- Bradenton, saying Commission had abused its discretion. Manatee County Branch said agency “failed to seriously consider” NAACP evidence of discrimination by station, and required NAACP “to prove what was in the mind and conscience of its opponents’ witnesses,” burden that it said was “inconsistent with well- established precedent.”
Pegasus wants FCC to reconsider decision that gave 5 rivals authority for intersatellite links (ISLs). Pegasus challenged applications of GE Americom, Hughes, PanAmSat, Teledesic and VisionStar, which received Commission authority for ISLs. Pegasus is one of dozen companies seeking slots in 2nd round Ka-band allocations.