FCC asked for comments on state of Alaska’s request to use e- rate funding to support community projects beyond traditional school and library uses. State asked for waiver to let others in community use e-rate funded dial-up Internet access if no access was available elsewhere in community and outside use was limited to when schools and libraries were closed. Comments are due April 6, replies May 7.
Ranking Democrats on Senate and House Commerce Committees warned FCC Chmn. Powell that Deutsche Telekom (DT) was controlled by German govt. and was ineligible for U.S. telecom licenses as part of pending VoiceStream merger. Ranking Democrat Hollings (S.C.), who repeatedly has voiced concerns about foreign ownership aspects of deal, and his House counterpart Dingell (Mich.) told Powell they “noted with interest” his desire to return agency to “a less activist agenda.” They wrote in letter sent March 6: “With the Commission’s upcoming decision on the DT-VoiceStream merger, the FCC will have a concrete opportunity to demonstrate this philosophy.” They cited recent press reports that DT Chmn. Ron Sommer faced mounting pressure, including from members of Germany’s parliament, to resign in face of company’s falling stock prices. Hollings and Dingell referred to comment by Germany Finance Ministry spokesman that agency was backing Sommer. They also cited congratulations from German Chancellor Gerhard Schroeder to Sommer on “setting up the company well both domestically and abroad.” Such “competing statements of concern and confidence” more typically are issued by private sector board members and not govt. officials, Hollings and Dingell told Powell. They also ticked off parts of merger record before FCC that they said pointed to German govt. control of DT -- govt. ownership stake, “large amount of debt” DT holds that is backed by govt., number of govt. employees working for DT who are statutorily protected under German law. “The Commission’s foreign participation order (FPO) was based on a Clinton Administration initiative that was neither submitted to, nor approved by, Congress,” Hollings and Dingell wrote. “To approve a transaction by relying on the FPO and the underlying executive agreement without congressional approval would be the height of agency activism.” Meanwhile, VoiceStream Vice Chmn. Donald Guthrie expressed confidence at Credit Suisse First Boston conference in N.Y. Wed. that merger would receive FCC approval around mid-April. “Chairman Powell has stressed the need to be timely,” he said. “We believe that that time frame is certainly a reasonable time frame.” Merger is on track to close in early June, with Guthrie saying he expected regulatory approvals before then.
Telemundo Network faces $7,000 FCC fine for delivering programming to XHAS-TV Tijuana without valid authorization, Enforcement Bureau said. Telemundo’s 5-year permit expired Sept. 1, but network continued to deliver programming for nearly 3 months, Bureau said.
Sen. Burns (R-Mont.) said he would push appointment of Mont. PSC Comr. Bob Rowe to FCC, although he admitted other members, notably Sen. Hollings (D-S.C.), had other candidates in mind. “We're going to try to do something with [Rowe],” Burns said Wed. at OPASTCO conference in Washington. He also addressed what he said was mixed effectiveness of Telecom Act, and wouldn’t rule out possibility of rewrite: “It has worked very well, [but] in some areas it has not. Will we have to open it up down the road? Maybe so.”
Local branch of NAACP asked U.S. Appeals Court, D.C., to overturn FCC decision renewing license of WWSB-TV Sarasota- Bradenton, saying Commission had abused its discretion. Manatee County Branch said agency “failed to seriously consider” NAACP evidence of discrimination by station, and required NAACP “to prove what was in the mind and conscience of its opponents’ witnesses,” burden that it said was “inconsistent with well- established precedent.”
Pegasus wants FCC to reconsider decision that gave 5 rivals authority for intersatellite links (ISLs). Pegasus challenged applications of GE Americom, Hughes, PanAmSat, Teledesic and VisionStar, which received Commission authority for ISLs. Pegasus is one of dozen companies seeking slots in 2nd round Ka-band allocations.
Rep. Boucher (D-Va.) urged USTA members to start lobbying to prevent Judiciary Committees in both houses of Congress from acquiring additional jurisdiction over telecom legislation. At USTA conference in Washington Wed., he also asked USTA to press Judiciary members to reject ALTS proposal that would require structural separation of ILECs’ network and wholesale units before offering interLATA data services, a measure he claimed was being orchestrated with support of long distance companies.
Land mobile radio services and 218-219 MHz service users face mandatory FCC electronic filing deadlines of March 20, April 25 and June 5. FCC Wireless Bureau said dates represented close of transition periods that end 6 months after date for each of 3 phases in which land mobile services have deployed to Commission’s universal licensing system. March 20 deadline is for first phase of land mobile deployment and April 25 for 2nd phase. Bureau said application also must be filed electronically by April 25 if both radio service codes were subject to order, but may be optional for radio services code.
Although it already has secured space on AOL Time Warner’s high-speed cable lines, EarthLink urged FCC to open all high-speed cable lines to independent ISPs. In its latest ex parte filings on Commission’s open access inquiry, EarthLink argued that “Internet access is an information service that is provided to the public via a telecommunications service” and that facilities-based providers of information services must offer nondiscriminatory access to their lines. EarthLink stressed that “increasing consumer demand for broadband services makes prompt Commission action on cable open access essential if consumers are to have meaningful choices of broadband Internet access providers.” Pointing to its own 4th-quarter growth, it said broadband “has now reached the point of exponential growth that was experienced in the dial-up Internet access market approximately 5 years ago.” EarthLink also warned FCC that U.S. Supreme Court could usurp Commission’s authority if it didn’t promptly decide “proper regulatory classification of cable modem service.” At same time, Comcast in ex parte presentation to FCC complained of service advances by MSO and increased competition it faced from DBS providers and cable overbuilders. Arguing that “the market is working,” company urged Commission to avoid extending open access mandates imposed on AOL Time Warner to rest of cable industry. It said cable Internet access “will continue to develop appropriately without government intrusion.” Comcast also said it was likely to extend its multiple ISP technical trial to other ISPs beyond Juno Online Services. In separate ex parte filing, AT&T said its multiple ISP technical trial in Boulder, Colo., had grown to include more than 300 cable subscribers. AT&T said test, now in 4th month, had 4 active ISPs -- EarthLink, Excite@Home, Juno, WorldNet. Company said 3 other ISPs -- IC&C (formerly RMI.net), MSN and Winfire -- still were working through “the technical and operational details of providing service and hope to be online soon.”
Young Bcstg. disputed EchoStar claim at FCC that it “conditioned” retransmission consent for Nashville and San Francisco stations on carriage of Young stations in other markets while charging excessive fees. After having local broadcast signals shut off in San Francisco and Nashville when it couldn’t reach agreement (CD March 2 p10), EchoStar moved fight with broadcaster to Commission, where it accused Young of attempting to get “arrangement” under which it would be paid “4 times for retransmission of network-affiliated stations.” Carriage complaint at FCC charged Young attempted to receive cash fee “above norm” for retransmission deals and making carriage of independent stations prerequisite for contract.