As expected, VoiceStream shareholders approved proposed merger agreements with Deutsche Telekom (DT) and DT and Powertel. In separate meeting, Powertel shareholders also approved transactions. Merger agreements still await approvals by FCC and Committee on Foreign Investment in U.S. Separately, VoiceStream and DT submitted ex parte filing to FCC rebutting some of foreign ownership concerns raised by ranking Senate Commerce Committee Democrat Hollings (S.C.) (CD March 8 p8). They cited Hollings’s argument that Sec. 310(a) of Communications Act should apply to merger. Companies said that section applies to radio licenses held directly by foreign govt., but doesn’t bar foreign govt. from obtaining indirect control over common carrier license. (German govt. now owns 59% of DT, but that level will be diluted after merger is completed). Sec. 310(b), which companies said should be applied to their merger, applies when foreign govt. owns interest of more than 25% of capital stock of corporation that controls U.S. subsidiary, filing said. “Indeed, the Commission could not have granted the merger applications filed by AirTouch and Vodafone, or British Telecom and MCI, if Senator Hollings’s interpretation of Sec. 310 were correct,” companies wrote.
CWA called for full FCC audit of AT&T Broadband’s cable franchises for alleged violations of agency’s public disclosure rules. Union said it found in preliminary survey of dozen AT&T franchise locations that company management had refused public access to records; didn’t make files available to public; maintained incomplete and outdated information. CWA told FCC that “especially troubling is the failure of AT&T franchises to maintain complete signal leakage logs and proof-of-performance records” that would demonstrate compliance with Commission’s technical standards for cable operators. Audit is needed to ensure compliance with those rules and technical standards, it said. Union said Commission also should levy financial penalty “commensurate with the record of violation of these rules.”
FCC Office of Engineering & Technology plans public forum to discuss “technical challenges” related to competitive access to fiber-fed transmission facilities between central offices and end users in next-generation networks. Agency said action was follow- up to earlier forum that looked at ILEC efforts to deploy fiber closer to end users through use of remote terminals. Meeting will be in the FCC meeting room, March 29, 1-4 p.m.
Northpoint urged FCC to grant its affiliates’ license applications “without further delay” in comments filed Mon. in 12 GHz spectrum proceeding involving development and use of Multichannel Video Distribution and Data Services (MVDDS). “With competition and digital services lacking throughout the country, the FCC should act now and allow us to start providing needed service” in U.S., Northpoint CEO Sophia Collier said. However, Satellite Bcstg. & Communications Assn (SBCA) is fighting to keep terrestrial services out of 12.2-12.7 GHz because of concerns of interference.
Commercial broadcasters and their lawyers who sat through seminar last week at FCC on upcoming auctions of FM frequencies were said to be “outraged” when Commission announced auction’s postponement just few minutes before nearly 5-hour session ended (CD March 9 p8). About 50 minority potential bidders, on other hand, were “elated” by delay, according to spokesman-attorney David Honig. New date for auction is Dec. 5 (postponed from May 9), with first payments to participate now due Sept. 24.
FCC proposed $1,020,000 fine against America’s Tele-Network (ATNC) Tues. for apparent violations of Commission rules against slamming. FCC staff determined that ATNC apparently was liable for fine of $40,000 for each of 17 alleged violations, for total of $680,000. Violations arose from 16 consumer complaints that FCC investigated out of more than 260 received. Commission further determined that due to apparent pattern of intentional and egregious misconduct, fine should be increased 50%. ATNC has 30 days to either pay proposed fine or show why it should be reduced. ATNC is nationwide reseller of long distance services, based in Roswell, Ga. FCC order cited numerous examples of misleading ATNC encounters with consumers. In one case, consumer said telemarketer called her, said she was with AT&T and wanted to correct overbilling problem. Telemarketer asked consumer to “confirm” her name, address and birthdate before company would send check to cover overbilling. ATNC later used that confirmation as proof that consumer wanted to subscribe to ATNC, FCC said. “The evidence before us indicates that ATNC has apparently willfully and repeatedly changed consumers’ preferred telecommunications providers without their consent.” agency’s order said.
ICO-Teledesic is about to emerge from mandatory quiet period with launch of its first satellite in June that will test communications systems for proposed voice and data service. Industry officials say ICO-Teledesic CEO Craig McCaw wants to be sure system works and prove to potential investors that service is viable before proceeding. System will be tested for months until McCaw is “satisfied no interference exists” that might hurt service, industry source said. New ICO spokesman refused to confirm launch plans, but admitted company would “make a statement” within next 30 days. Spokesman also said New ICO would “wait until the market firms up” before floating IPO.
Wash. Utilities & Transportation Commission (WUTC) can’t conduct 1000-block number pooling trials in 509 area code (Spokane) without further authorization from FCC, agency said. Statement came in March 12 letter to Qwest, which had sought clarification. Agency said it gave WUTC delegated authority for pooling trials in several other area codes after it demonstrated it had met certain criteria. WUTC hasn’t done so yet in 509 area and “would need to petition the FCC, or supplement its previous petition, and make the requisite showing before such authority for the 509 [code] could be granted,” said letter signed by Deputy Common Carrier Bureau Chief Yog Varma.
Rural telcos warned FCC in reply comments filed Mon. that altering Multi-Assn. Group (MAG) plan to reform rural universal service and access charge programs would destroy it. Alliance of Incumbent Rural Independent Telephone Companies (AIRIT), coalition of 90 companies formed after initial comments were filed Feb. 26 on MAG plan, said it was based on finely crafted compromises. They said rural companies bought into plan only if all terms were retained to reflect those compromises: “In good faith, rural companies have generally endorsed the efforts of their various associations to work together to develop a ‘holistic’ plan for change in access charges, the universal service fund and subscriber line charges.” Companies expected FCC to either adopt or reject it, they said. However, many parties since have proposed changing it and rural telcos “must act to protect their rights,” AIRIT said. Comments “clearly demonstrate the intent of other… parties and interest groups to utilize the MAG and RTF [plans] as forums to advance their business agendas as opposed to the public interest,” they said. Telcos said they were even more concerned because alternative Rural Task Force (RTF) plan appeared to be inconsistent with Telecom Act. They said RTF would have to be changed to clarify its “disturbing aspects.” AIRIT said rural telcos were confused about RTF and didn’t realize it had problems: “The consensus reached by the rural industry as reflected in the MAG proposal did not contemplate the implementation of the troubling aspects of the RTF… plan.” Telcos said problem centered on RTF plan to convert universal service funding to per- line basis and make it portable.
National Exchange Carrier Assn. (NECA) told FCC it supported Puerto Rico Telephone Co. (PRTC) request for extension of waiver that lets it remain under rate-of-return regulation and stay in NECA’s common line pool. NECA said waiver would let PRTC continue to receive long-term support, “which is essential to PRTC’s ability to keep rates affordable and, by extension, for long distance carriers to keep toll rates reasonable.” FCC first gave PRTC waiver year ago.