House Telecom Subcommittee has scheduled its next 3 hearings, all on Thurs. at 10 a.m. On March 8, panel will review educational technology, which is of special interest to new Chmn. Upton (R-Mich.), in Rm. 2322 of Rayburn. On March 15, it will look at DTV, getting “Private Sector Perspective on the Transition.” On March 29, it will review new FCC Chmn. Powell’s agenda and plans for FCC reform. Latter 2 hearings will be in Rm. 2123 of Rayburn.
House Commerce Committee adopted amended version of “2% carrier” bill (HR-496) by Rep. Cubin (R-Wyo.) Wed. and sent it to House floor. Measure seeks to reduce regulation of ILECs that control less than 2% of nation’s access lines. Committee Chmn. Tauzin (R-La.), before introduction of amendment, said deregulatory bill was “indicative of future action on telecommunications reform.” He said committee and full House last year passed similar bill, which then stalled in Senate.
Proposal by Multi-Assn. Group (MAG) to reform universal service and access charge regulation for rural telcos received mixed reviews by groups filing comments with FCC Mon. Organizations that developed MAG plan -- National Rural Telecom Assn., National Telephone Coop Assn., OPASTCO and USTA -- urged FCC to adopt it as it was written because it “best meets the Commission’s multiple policy goals for rural and insular areas.” However, several state regulatory bodies opposed plan, as did several groups representing consumers and business users. NARUC expressed concern Tues. when its Telecom Committee adopted resolution urging FCC to refer MAG plan to Federal-State Joint Board on Universal Service for further review (CD Feb 28 p6).
For 3rd time in 3 weeks, FCC Comr. Tristani objected to Enforcement Bureau decision not to investigate indecency complaint (CD Feb 14 p7, Feb 9 p7). Latest case involves complaint that show on WGR(AM) Buffalo repeatedly referred to urination. “I am at a loss to explain the failure to even seek further review,” Tristani said.
Consumer Federation of America (CFA) and Mass. Consumers Coalition urged FCC Wed. to deny Verizon’s application for Sec. 271 entry in Mass. because rates carrier charged competitors weren’t cost-based and its operations support systems (OSS) were inadequate. In conference call with reporters, CFA Research Dir. Mark Cooper said group was concerned about pricing issue because Verizon was using same rates as were adopted in N.Y. state, rather than undergoing separate cost review by state regulators in Mass. He said OSS concern was similar to that raised by Dept. of Justice -- lack of adequate support for competitors seeking access to DSL lines. Cooper said Mass. application was particularly important because it was first one to be acted upon by new FCC under Chmn. Powell and because it set stage for large number of new applications expected this year. If FCC approves questionable pricing strategy on Mass. application, it could set precedent, Cooper warned. He said CFA supported Verizon’s N.Y. application but plugging N.Y. rates into Mass. application was “legally flawed.” “We would like to reestablish discipline on the part of the Commission,” he said. Wed. was deadline for reply comments on Verizon’s Mass. application. Company urged FCC to approve it, based on fact that competitors had captured more than 16% of phone lines and were gaining 1% every 6 weeks. Verizon has to prove its local network is open to competition before getting long distance authority under Sec. 271. It said level of competition in Mass. was highest yet seen by FCC in any state where Bell company had sought entry. “These numbers clearly demonstrate that the Massachusetts telecommunications market is irreversibly open,” Verizon Senior Vp Thomas Tauke said. Because of concerns about DSL access, Verizon refiled its application Jan. 16 to offer more proof of nondiscriminatory access. Company said there now was more proof because in last 2 months it had met more than 97% of its installation appointments for DSL-capable loops and 96% of them had operated without problems.
Large carriers informed FCC and SEC of details of financial arrangements with designated entities in recent C-block re- auction, including $2.6 billion pledged by AT&T Wireless to Alaska Native Wireless (ANW). Cingular Wireless said it has planned $460 million in loans to designated entity Salmon PCS. FCC released public notice late Tues. (CD Feb 28 p5) on long forms filed by successful bidders in PCS auction that raised $17 billion. Relationships between major carriers and designated entities, which qualified to bid on licenses closed to smaller bidders in auction, have been subject of scrutiny by some smaller carriers.
Top federal telecom policymakers warned state regulators to be cautious as federal govt. and states evaluate telecom policy 5 years after Telecom Act’s passage. In speech to NARUC Winter Committee Meeting in Washington Wed., new FCC Chmn. Powell said state and federal policymakers needed to “focus on new rules for a new network” rather than policies based on “legacy costs.” Senate Communications Subcommittee Chmn. Burns (R-Mont.) said main task facing regulators was “to square the business world with the consumer world,” securing both consumer benefits and business investment opportunities in telecom. House Commerce Committee Chmn. Tauzin (R-La.) cautioned against making politically expedient policies that distorted utility service markets by concealing true costs.
Wireless and broadcasting industries and their regulators were caught offguard Wed. when Bush Administration seemed to propose mysterious multibillion-dollar initiative to hasten broadcasters’ departure from analog spectrum. White House buried section in tables in back of “budget blueprint,” which otherwise didn’t mention FCC or telecom issues even once. By end of day Wed., our sources still were trying to figure out exactly what policy shift was being contemplated. White House and OMB didn’t return calls for explanation. Fuller budget book with line items and explanations isn’t expected until April.
Sen. McCain (R-Ariz.) introduced low-power radio bill (S-404) aimed at reversing “anti-low-power FM [LPFM] radio language” attached to appropriations legislation last year. Bill would: (1) Enable FCC to license LPFM stations and reject licenses only for stations “whose transmissions are actually causing harmful interference to a full-power radio station.” (2) Require FCC by Feb. 23, 2002, to complete all necessary rulemakings implementing full-power stations’ transition to digital broadcasting. (3) Direct FCC to identify stations causing interference and how LPFM stations could resolve interference problems.
Arch Wireless subsidiary AWI Spectrum and Nextel subsidiary ACI filed application for FCC approval to assign 150 licenses in 900 MHz specialized mobile radio service to Nextel from Arch. Agency is seeking comments by March 21, with replies April 2.