While differing on some details, wireless carriers and equipment makers in comments last week urged FCC to make additional spectrum available for 3rd generation and advanced services. Among most pointed recommendations were those of equipment vendors such as Ericsson, Motorola and Qualcomm, which pointed FCC toward spectrum now occupied by federal govt. users in 1.7 GHz band as ideal for 3G. Motorola urged Commission to alter auction process so that part of proceeds could be used to help pay for relocating incumbents. In move that may require legislative change, Motorola said that would avoid pitfall of current system “where the true costs of relocating incumbents only becomes known to successful bidders after the auction.” Several commenters stressed need for FCC to make more spectrum available on faster timeline than that laid out under several agency proposals.
Nine members of Wash. state’s House delegation urged FCC Chmn. Powell to move “expeditiously” on VoiceStream-Deutsche Telekom merger and to keep international trade implications in mind. “There is no way in which this merger reduces competition in the United States or in any way harms U.S. consumers,” bipartisan group of representatives said. Letter was signed by Wash. Reps. Nethercutt (R), Dunn (R), Dicks (D), Hastings (R), Smith (D), Inslee (D), McDermott (D), Larsen, Baird. Members also said European Commission recently urged U.S. to abide by its World Trade Organization basic telecom agreement commitments. “If the FCC were to disregard those commitments, or to interpret U.S. law or its rules in a manner that conflicted with those commitments, the FCC would start a trade war that could damage exports in any sector of the U.S. economy, not just telecommunications.”
Ameritech local exchange competitors warned Ill. Commerce Commission (ICC) that Ameritech local customers could face another service quality meltdown this summer as result of what it charged was company’s systematic underspending on its infrastructure for last decade, a claim Ameritech disputed. CLEC-supported Ill. Coalition for Competitive Telecom Thurs. released AT&T- commissioned study by Chicago telecom consultant Gregory Busch that reviewed Ameritech’s ARMIS reports to FCC 1988-1999. Report said that for most of 1990s, after Ameritech moved to relaxed price cap regulation, company on average spent 25% less per line on capital improvements than Bell companies in other regions. Busch’s report said data indicated Ameritech management took advantage of lenient regulation by shortchanging network to bolster profit margins. “SBC bought a system with serious problems, and years of neglect cannot be corrected in a few months. The system will fail again once service demand increases,” Busch said. He said demand for new and relocated wholesale and retail phone service in Ill. rises in peak moving season in spring and summer months. Ameritech Pres. Edward Meuller, who came on board after SBC-Ameritech merger, said company had kept its promises to improve service and met ICC service standards in Jan. He didn’t comment on company’s investment history before acquisition by SBC, saying carrier was focused on continued improvements in customer service to ensure no repeat of last summer’s installation and repair delays. ICC Chmn. Richard Mathias said agency had concerns about Ameritech’s capacity to handle service orders and repairs and had sent questionnaire asking about role that condition of infrastructure played in company’s service performance. “We'll be watching their performance closely,” he said. ICC recently penalized Ameritech $34 million for its retail service failures in 2000 and Tues. fined company $1.2 million for failing to provide adequate wholesale service in last part of 2000, bringing total fines for wholesale service performance failures in 2000 to $6.3 million Sustained service quality improvement is critical for Ameritech now for 2 reasons: (1) Ill. legislature is considering bill (SB- 134) to replace expiring Ill. regulatory law with new statute that would deregulate Ameritech’s business services and minimally regulate residential service. (2) Ameritech recently advised ICC that it planned to ask this summer for agency’s endorsement of Sec. 271 interLATA long distance entry.
CTIA filed challenge in U.S. Dist. Court, D.C., Fri. on scope of Advisory Council on Historic Preservation’s (ACHP) authority to promulgate rules that bind FCC. CTIA is challenging final rule that ACHP adopted Dec. 12 that implements Sec. 106 of National Historic Preservation Act (NHPA). Act covers regulations on siting and environmental impact designed to ensure that facilities, including wireless towers, have no adverse impact on historic properties. CTIA, in complaint that names ACHP, its Chmn. Cathryn Slater and Exec. Dir. John Fowler, wants court to review final rule. CTIA argued that regulation was beyond scope of ACHP’s rulemaking authority under NHPA. CTIA also challenged rule as arbitrary and capricious, unconstitutional and “otherwise not in accordance with law.” It said wireless carriers were adversely affected by rule because it favored “intensive government oversight and unwieldy bureaucratic procedures to ensure that the goals of the NHPA are satisfied.” Final rule is at odds with “statutory mission” of FCC and telecom industry, CTIA said. Assn. said final regulation threatened to undermine purpose of Communications Act, “particularly as it applies to fostering the rapid growth and development of wireless communications infrastructure.” Complaint argued that ACHP’s role was advisory under NHPA and that final rule had expanded its authority unlawfully. Federal agencies, not advisory councils, have authority to adopt regulations implementing siting requirements of Sec. 106, CTIA contended. Complaint apparently doesn’t alter agreement reached earlier this year between wireless industry and govt. policymakers, including ACHP, on how tower siting issues should be handled for colocation of equipment at existing sites.
Suit in Cal. State Superior Court charging Exec. Producer Mark Burnett, CBS and others with fraud in production of network’s reality program Survivor has been sent to FCC by plaintiff and former contestant Stacey Stillman. In suit, filed Feb. 5 in San Francisco, Stillman accused Burnett of violating Sec. 508 of Communications Act -- which was added to Act following rigged quiz shows in early 1960s. Section makes it crime “to engage in any artifice or scheme for the purpose of prearranging or predetermining in whole or in part the outcome of a purportedly bona fide contest.” Stillman claimed Burnett and others connected with program conspired to induce other contestants to vote her off program in early episode, saying: “Defendants violated the law by interfering in the voting decisions of the Survivor contestants, which determined, in whole or in part, the outcome… Defendants… supplied to certain contestants special and secret assistance whereby the outcome of the purportedly bona fide contest of the Survivor was in whole or part prearranged and predetermined.” Commission had no comment. Meanwhile, defendants in Stillman suit filed countersuit in L.A. court charging breach of contract, extortion, defamation and disparagement.
FCC Chmn. Powell would like to see changes in Commission’s operation so agency could react better to new technology and other developments, he told news media Thurs. after Commission’s open meeting. He wouldn’t outline his specific plans -- “stay tuned,” he said in answer to reporter’s request for more details. However, he endorsed calls by agency staff for hiring and retaining more engineers, beefing up technical expertise of agency, improving coordination among bureaus in areas such as spectrum management. Agency needs to be smarter and faster, Powell and others said. When reporter noted that many chairmen had pledged better operations, Powell responded: “It’s clear where we want to go. I'm going to die trying… You can judge me when we're finished. It’s not window dressing.”
FCC should act quickly on point system to select among applicants for noncommercial educational broadcast licenses (MM 95-31), Media Access Project said in ex parte filing. Although participants may disagree on details of selection system, group said they all agreed decision was needed to allow Commission to begin eliminating backlog of mutually exclusive applications, some of which have been waiting nearly 6 years. Separate filing said freeze on new applications had added to problem, since many stations couldn’t apply for Commerce Dept. funding for upgrades.
Former FCC Chmn. William Kennard was honored for “diversity agenda” at private Black History Month Reception hosted by civil rights leaders, industry lawyers and former FCC colleagues Tues. in Washington Event was organized by Black Entertainment & Telecom Assn. (BETA). FCC Chmn. Powell attended briefly and praised Kennard for his “commitment and outstanding work” during tenure at Commission. BETA Pres. Talib Karim, who was hired by Kennard at FCC before beginning private practice, said policies of Kennard “not only benefitted blacks, Latinos, Native Americans and other historically disadvantaged groups,” but he “opened up opportunities for small business owners and ordinary consumers by encouraging and promoting competition” in telecom, broadcasting and cable industries. “A lot of us have rested upon his shoulders and it’s now up to us who follow to continue his legacy.” Kennard said he was humbled and “touched by expressions of love” demonstrated at event that attracted overflow crowd of 200, including FCC’s Tom Tycz, NTIA Dir. Greg Rohde, NAB Vp Dwight Ellis, civil rights leader Dick Gregory, lobbyist Tom Hart, Northpoint Vp Toni Cook-Bush, Minority Media Telecom Council Exec. Dir. David Honig, representatives of Black Entertainment TV, AOL, NCTA, Black Entertainment TV, National Assn. of Minorities in Communications (NAMIC), National Bar Assn. and TV commentator Maureen Bunyon. As first African-American chmn. of FCC, Kennard said it was “significant” that he “won’t be last” with ascension of Chmn. Powell.
Requiring broadcasters to post public interest filings on Web sites wouldn’t be change of policy, just “responding to changed conditions, including the development of the Internet and the fact that most stations have Web sites,” public interest groups led by United Church of Christ said in comments on FCC rulemaking (MM 00- 168). Groups said posting (CD Feb 21 p8) simply makes files “consistent with modern means of accessing information” and wouldn’t impose new programming requirements.
With many small-market broadcasters delaying move to DTV, Shockley Communications went opposite direction and was quick to equip its 6 TV stations for high-definition transmissions once FCC set parameters -- and long before Commission’s May 1, 2002, deadline for group’s small-market stations to go digital. Commission FCC official said Shockley was only small group to move so quickly into digital. Hundreds of stations still haven’t installed necessary equipment and are taking a “wait-and-see attitude” -- particularly in markets below 100. Typical viewpoint is that of Michael McKinnon, owner of TV independent station in San Diego and 2 ABC affiliates in Tex., who told us last spring: “I'm going to be the No. 3 or No. 4 guy in digital in my markets… I want the other guys to get an arrow in the back” (CD March 23 p6).