“One-on-One” with FCC Chmn. Powell highlights NAB State Leadership Conference Mon. at J.W. Marriott Hotel, Washington. Powell will immediately follow opening panel of FCC staffers. Members of Congress scheduled to appear include House Majority Leader Armey (R-Tex.), House Telecom Subcommittee Chmn. Upton (R- Mich.), Sen. Hollings (S.C.), ranking Democrat on Commerce Committee, and Sen. Cleland (D-Ga.) of Commerce Committee.
Regulators grappled at ITU information session on IP telephony in Geneva Tues. with how to preserve universal service on new networks while opening competition beyond legacy systems controlled by incumbent operators. Day-long information session was held before start today (Wed.) of World Telecom Policy Forum on IP telephony, first summit on that topic hosted by ITU. “IP telephony can spur the deployment of Internet facilities in developing countries,” said FCC Comr. Ness on panel, echoing point raised elsewhere in information session that IP technology could “leapfrog” legacy systems in areas that still didn’t have full build-out of circuit-switched systems. “The FCC encourages governments to remain open to the development of IP telephony. To the greatest extent possible, market forces should continue to drive advances,” she said.
Research firm Jupiter Media Metric forecast that wireless Web users in U.S. would grow to 96 million in 2005 from 4.1 million in 2000. In report, Jupiter projected that of 96 million users then, 74.9 million would be using handsets centered on voice functions, 7.3 million data-centered handsets, 4.4 million Web-enabled personal digital assistants. Report predicted that national carriers would be consolidated into 3 companies within 5 years as regional operators are absorbed by larger rivals. Jupiter said 3rd-generation wireless services were “no near-term reality” in U.S., although they were scheduled to launch in Asia in next 2 years, with U.S. and European markets not seeing wireless broadband connections for 4 to 6 years. U.S. deployment of location-based wireless services will emerge in 2 years, report said, driven by FCC mandates on Enhanced 911 capabilities. Jupiter said European carriers would promote location-based mobile services in next year using less precise location data.
FCC Common Carrier Bureau declined to preempt Nev. PUC decision delegating interconnection agreement negotiations for county-owned telecom incumbent to county govt. Case involved negotiations between Churchill County Communications (CCC) and CLEC Virtual Hipster. CLEC had sought PUC arbitration of impasse with CCC, but PUC said state law gave Churchill County Board of Commissioners primary jurisdiction over county-owned telecom company. County board said it was willing to arbitrate interconnection agreement, but Virtual Hipster wanted FCC to take over on ground that state had refused to carry out its Telecom Act responsibilities. Common Carrier Bureau said preemption wasn’t justified since state law vested jurisdiction in such matter at county level and county was willing to participate in Telecom Act’s process.
There’s no requirement that long distance companies must interconnect with CLECs unless FCC imposes specific order and prescribes “economic terms associated with such obligation,” Sprint argued in reply comments filed with FCC March 2. Comments were in proceeding exploring whether long distance companies could refuse to purchase access services from certain CLECs. Sprint asked for declaratory ruling after U.S. Dist. Court, Alexandria, Va., asked for FCC input. Furthermore, said Sprint: “The Commission consistently has taken a market-based approach to the offering and provision of CLEC access service, which permits and encourages IXCs [interexchange carriers] to shift their access business to and from access service providers based on cost considerations.” Issue stems from long distance companies’ refusal to pay access to CLECs who set their fees much higher than ILEC market rates.
Verizon is now 4th largest long distance company in U.S., having just hit 5 million customer mark, Co-CEO Ivan Seidenberg said Mon. at Credit Suisse First Boston conference in N.Y. He said company was aiming for 6.4 million by end of year as it gained Sec. 271 approval in more states. Current customer base includes former GTE states and N.Y. where it won Sec. 271 entry year ago. FCC action is expected soon on Mass. application, and Verizon plans to file applications for N.J. and Pa. soon, he said. Seidenberg also told investors that Verizon was on track to meet financial targets announced in Feb., including revenue growth in 8-10% range for year and similar gain in earnings per share. He said company’s predictions were conservative because they already factored in soft economy. On wireless side, company now has 27.5 million customers, with 50% of them using digital technology. Seidenberg predicted that regulatory environment would go through “enormous changes” with new Administration and new FCC Chmn. Powell. He said he expected Powell to go from old FCC’s habit of “managing market share and picking winners and losers” to “letting the marketplace pick winners and losers.”
Spanish-language Telemundo TV Network is using FCC procedures in effort delay debut of Azteca America as 3rd U.S. Hispanic network, official of Azteca said. Comment was in response to Telemundo petition -- charging potential interference to existing stations -- to Commission to reconsider staff grant of Pappas Telecasting’s purchase of CP for Ch. 54 KIDN-TV Avalon, Cal., in L.A. market, to be affiliate for Azteca America. Planned network is co-owned by Pappas and Azteca Mexico and plans late-spring start. L.A. affiliate is “critical” to its success, Azteca said.
Decision by U.S. Appeals Court, D.C., to apply strict scrutiny to FCC EEO rules “creates a substantial conflict in the case law,” Minority Media & Telecom Council and People for the American Way said in joint petition for rehearing (CD March 5 p9, Jan 17 p1). Petition said other courts had said repeatedly that such programs weren’t subject to strict scrutiny because they didn’t create racial preference. FCC made it clear in its rules that race or gender shouldn’t be basis for hiring decisions, petition said: “The FCC made it clear that it would use applicant pool data merely as an indicator that broad outreach has been achieved.” Minority groups also disputed Appeals Court ruling that they said “simply assumes that Option B makes non-minorities into victims of discrimination.” Petition seeks either rehearing or en banc hearing.
In case closely watched by satellite TV industry, U.S. Appeals Court, D.C., quizzed lawyers on both sides Mon. over FCC rules that preempt landlords, building managers and homeowner groups from blocking renters from installing DBS dishes and other types of TV antennas. Hearing oral argument in case, panel of 3 judges particularly grilled attorneys for Building Owners & Managers Assn. International, which brought suit against govt.’s regulations for over-the-air reception devices (OTARD). While judges also questioned attorneys for FCC and DirecTV, they directed most of their attention to building owners and wondered aloud why they hadn’t taken complaints about OTARD rules and supporting statutes to other forums. They also asked why landlords didn’t simply raise their rents to cover cost of alleged “physical taking” of their property and interference with their contractual relationship with tenants.
White House reportedly is nearing announcement of nomination of Tex. PUC Chmn. Pat Wood as head of Federal Energy Regulatory Commission (FERC). Wood had been rumored to be up for appointment by President Bush to fill Republican slot on FERC or FCC. Reports last week indicated Wood now was expected to be named FERC chmn. “We've had many inquiries,” said Tex. PUC spokesman, who declined to comment on reports. “We've had nothing new out of Texas.”