Sen. Brownback (R-Kan.) reintroduced bill that would lift FCC cap on amount of spectrum companies could be licensed to use in any one market. Wall St. analyst predicted FCC would lift or modify cap long before bill could be signed into law, in light of FCC Chmn. Powell’s free-market position and likelihood Commission would act by September on NPRM that raised question whether there was need to maintain caps. “This is Brownback’s] way of saying: ‘This is what I want you to do,'” analyst said. CTIA spokesman said bill showed support on Hill for removal of spectrum caps, which limit ownership total to 45 MHz in major markets and 55 MHz in smaller markets. National Telecom Co-op Assn. said that if caps were modified, whether by FCC or Congress, it was important to keep in mind needs of small carriers. “What has happened in auctions of the past is that small companies have been shut out,” spokeswoman said.
SBC filed Sec. 271 petition at FCC Wed. seeking approval to enter long distance market in Mo. Bid by SBC unit Southwestern Bell Telephone to provide interLATA long distance service came after Mo. PSC voted 5-0 March 6 to endorse application, finding it in public interest after 2-1/2 year review. “In its final order, the state commission concluded that there could be little doubt that SBC’s entry into Missouri’s long distance market will increase consumer choice for long distance service in the state,” SBC Senior Vp-FCC Priscilla Hill-Ardoin said.
FCC’s Mass Media Bureau rejected emergency petition by Verizon Wireless that sought delay in actions on 2-way service applications for Multipoint Distribution Service (MDS) and Instructional TV Fixed Service (ITFS) licensees. Verizon last week (CD March 30 p1) had asked FCC to hold off on applications until decisions were made on additional spectrum for 3rd generation wireless services. FCC is studying bands, including 2.5 GHz occupied by MDS and ITFS systems, for additional spectrum, with NTIA analyzing military-occupied spectrum in 1.7 GHz (CD April 2 p1). But bureau concluded that Verizon hadn’t met legal requirements that would justify stay on processing applications, which are expected to be granted shortly. Bureau said Verizon hadn’t shown it would be irreparably harmed without stay. “Rather, Verizon’s vague arguments espouse conjecture about events that may or may not occur,” order said. Verizon “speculates” on issues, such as 2500-2690 MHz band potentially being reallocated to accommodate 3G and that rollout of 2-way services could increase costs of any reallocation, order said. “Significantly, Verizon has not requested that the Commission similarly restrict licensees’ use of other spectrum that is being considered for possible 3G use,” bureau said. Stay could “irreparably injure” MDS and ITFS licensees that are poised to deploy services “and potentially disadvantage these licensees with regard to other broadband services, such as DSL service,” FCC said. Wireless Communications Assn. had objected to emergency petition, calling it anticompetitive.
Creation of “a multibillion-dollar” Digital Opportunity Investment Trust -- with much of proceeds earmarked for public broadcasting -- is recommended in 2-year study to be released today (Thurs.). Fund would be financed by proceeds from future spectrum auctions, which Congressional Budget Office estimated would produce $18 billion over next several years. Authors of report are Newton Minow, FCC chmn. in Kennedy Administration, and Lawrence Grossman, former pres. of PBS and NBC News. Recommendations in report would require approval by Congress for use of federal money before fund could be established.
Senate Antitrust Subcommittee members criticized cable operators for raising prices faster than general inflation rate and withholding local sports and other popular programming from DBS and cable overbuilders. In hearing on cable competition Wed., they also questioned why retail market for competitive digital cable set-top boxes hadn’t developed, more than 5 years after passage of 1996 Telecom Act. In addition, senators lashed out at 3 largest MSOs -- AT&T, AOL Time Warner and Comcast -- for declining invitations to testify, focusing most of their heat on Comcast.
Citicasters faces $25,000 fine for taking control of WBTJ(FM) Hubbard, O., without prior FCC approval, Commission’s Enforcement Bureau said. Citicasters, which was operating station under time brokerage agreement, obtained temporary restraining order from court blocking owner Stop 26-Riverbend Inc. from preempting Citicasters programming, which Bureau said meant “unauthorized assumption of control.”
Beating down latest VoiceStream-Deutsche Telekom rumor, FCC Comr. Tristani took unusual step Wed. of issuing statement disavowing forged correspondence between herself and Sen. Hollings (D-S.C.) on slowing down pending merger. Pair of faked letters began circulating widely in Washington Tues., including one purportedly from Hollings asking Commission to defer acting on transaction until he had chance to introduce bill clarifying Sec. 310 of Communications Act. Agency spokesman said issue has been handed over to FCC Inspector Gen. for review. Hollings aide dismissed letter as hoax. Although Tristani said she didn’t typically comment on pending mergers, she said neither she nor staff members had corresponded with Hollings on deal. FCC faces self-imposed deadline of April 8 to act on proposal within 180 days after it was filed. “I am deeply troubled that the Commission’s process is being used for deceitful purposes, and I have asked the Chairman to initiate a full investigation of this matter and to refer it to other federal agencies as appropriate,” Tristani said.
Rather than moving immediately to subsidize advanced services as part of universal service program, FCC ought to form task force to determine “how and when” such services should be added, group of telecom experts will recommend in report to be issued today (April 5). Some 50 people, assembled by Consumer Energy Council of America (CECA), spent 6 months studying ways to improve universal service. Group decided that program was “vital to the social wellbeing of all Americans” and should be continued, but it stopped short of recommending expansion without more study. Instead it said Technology Task Force (TTF) should be formed to advise FCC and Federal-State Joint Board on Universal Service. Task force would be composed of “broad balance of stakeholders” to offer variety of viewpoints and would monitor development of advanced services on more continuous basis than is done now, CECA group recommended. Group, which is chaired by former White House and FCC official Kathleen Wallman, also recommended: (1) “Model state programs” for distributing low income support. (2) Better ways of publicizing low income support programs. (3) Streamlined process for gaining certification as eligible telecom carrier (ETC). State and federal regulators could work together to improve ETC process, CECA group said, using input from states that already have made improvements. (4) Program, coordinated by Universal Service Fund, to encourage deployment of advanced services through efforts of federal, state and local govts.
Assn. of Communications Enterprises (ASCENT), along with 35 competitive telephone companies, urged FCC to lift restriction on use of unbundled local switching (ULS) in top markets. In letter sent Wed., group said restriction should be raised from 3-line threshold to full DS-1 level. Limiting ULS to customers with no more than 3 lines “virtually denies all but a very few… CLECs the ability to service customers, particularly small businesses, in the largest urban markets,” group said.
House Commerce Committee ranking Democrat Dingell (Mich.) said his soon-to-be-reintroduced broadband deregulatory bill “will confer benefits on the baby Bells,” as critics of interLATA data relief legislation often claim. But similar version, then numbered as HR-2420, last year co-sponsored by Committee Chmn. Tauzin (R-La.), “also confers benefits on the public at large and it confers benefits on other segments of industry,” he said Wed. at seminar in Washington sponsored by Quello Center for Telecom Management and Law Review of Mich. State U.-Detroit College of Law.