ICO-Teledesic Global, which controls satellite assets of Craig McCaw announced agreement Wed. with Ellipso to collaborate on building mobile satellite system, terms not announced. ICO- Teledesic subsidiary New ICO and Ellipso will work together on financial, business and regulatory issues related to deployment of satellite systems capable of providing wide range of advanced broadband services globally, they said. Companies said deal could lead eventually to strategic alliance and merger. “This is the first step” of Craig McCaw in “acquiring assets of Ellipso,” spokesman said.
ALTS said FCC could promote DSL competition if it barred ILECs from offering DSL capabilities to customers served by remote terminals until they gave competitors same capability. In reply comments on ILEC line-sharing requirements, ALTS said such action would “eliminate ILEC incentives to continue stonewalling competitors who want to provide services to those customers.” It said that while there was competition for DSL-based services there was “virtually no competition in the provision of the underlying local loop on which DSL rides.” ILECs’ arguments that they should be exempt from unbundling rules because DSL competition exists are “red herring,” filing said.
FCC denied petition for reconsideration of its June decision to approve AT&T-MediaOne merger. In order adopted Feb. 8 but not released until Wed., FCC rejected arguments for review in joint petition by Consumers Union, Consumer Federation of America and Media Access Project. Rejecting petitioners’ contention that agency’s decision was tainted by violation of ex parte rules, Commission said it had “relied on no other information or arguments” that were not part of voluminous record compiled in proceeding. Petitioners had alleged that AT&T had hundreds of meetings with Commission staff without filing adequate notification of substantive issues presented, violating agency’s rules. As for charge that Commission’s “overly generous” determination to give AT&T 12 months to come into compliance with cable ownership limits was “arbitrary and capricious,” FCC said decision rested on its finding that special circumstances warranted additional time and that grant, as conditioned, served public interest. Order doesn’t address any of issues presented to FCC by U.S. Appeals Court, D.C., in remanding agency’s limits on cable horizontal and vertical ownership, Commission said.
U.S. carriers outlined litany of concerns to FCC International Bureau Wed. on challenges they face when entering foreign telecom markets, with several companies stressing lack of enforcement in countries that have deregulation measures. Bureau held forum to solicit information it will use to supplement its 2000 edition of International Markets Report. Western Wireless International Pres. Brad Horwitz told forum that company had focused on foreign markets where cost of entry to obtain licenses was low, through processes such as comparative hearings rather than auctions. Having entered markets, process of obtaining interconnection is one of largest challenges, Horwitz said. On regulatory side, company faces challenge of lack of enforcement powers by agencies in countries where incumbent telco may be “the largest hard currency earner,” he said. “You make progress but it’s in small steps -- circuit by circuit.” Joanna McIntosh, AT&T vp-international affairs, told International Bureau that it would be helpful to have U.S. regulators link telecom issues discussed with foreign counterparts to market access issues. “There is no sense talking about joint statements on e-commerce if there is no infrastructure to take you there,” she said. Dan Gonzalez of XO Communications outlined gamut of market entry requirements, with U.K., Germany and Netherlands tending toward more flexible regulations. Countries such as Belgium and France are on more restrictive end of spectrum. Lawrence Spiwak, pres.-Phoenix Center for Advanced Legal & Economic Policy Studies, said “fundamental problem” was that foreign regulators frequently looked to example of U.S. telecom policy for guidance. “The U.S. is not setting a good example,” he said.
FCC is seeking comment on Cingular Wireless request for waiver to exclude from CRMS spectrum cap 1.5 MHz of 900 MHz SMR spectrum held by its subsidiary Cingular Interactive. In request filed March 7, Cingular said that spectrum company wanted to exclude was well below recognized amount needed to compete in broadband CMRS market and wasn’t interchangeable with any of Cingular’s cellular or PCS spectrum. Granting waiver would permit Cingular, in nonrural markets where it already has cellular license totaling 25 MHz, to obtain 2nd 10 MHz broadband PCS license without exceeding cap. Comments are due April 3, replies April 13.
FCC modified methodology used to assess contributions carriers make to federal universal service support mechanisms by reducing interval between accrual of revenues and assessment of contributions based on those revenues. To base assessments on revenue data more reflective of current market conditions, interval was reduced to 6 months from one year. Agency said existing process “may place carriers with decreasing interstate revenues at a competitive disadvantage as compared to carriers with stable or increasing interstate revenues.” Some carriers had complained that basing contribution on year-ago revenue was unfair. They said if their revenue went down in current year they would end up paying greater percentage of their current revenue into universal service fund than other carriers. Agency said it still thought current methodology was “competitively neutral” and met Telecom Act but “we conclude that reducing this interval will be superior to the current methodology by basing assessments on revenue data that are more reflective of current market conditions.” FCC said it decided against alternative of basing contributions on current revenues as AT&T sought because it would increase reporting burdens on carriers.
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.