Wireless industry continued Thurs. to step up calls for policymakers to move quickly to free up spectrum and to examine auction plans that would use part of proceeds from bidding to move incumbents. One theme of wireless panel at Precursor Group conference in Washington was that decisions needed to be made quickly to keep U.S. competitive with wireless data offerings unfolding elsewhere in world. FCC Wireless Bureau Chief Thomas Sugrue told conference that Commission planned to make decision by fall on notice of proposed rulemaking on whether there still is need for spectrum cap.
Only reason CableLabs’ PHILA copy protection provisions deals with component analog outputs is that those outputs transmit high- definition digital picture, albeit in analog, to viewing devices, NCTA Senior Vp-Law & Regulatory Policy Dan Brenner said in letter to FCC Chmn. Powell. Responding to objections to PHILA technology license raised by Consumer Electronics Retailers Coalition (CERC) (CD Feb 21 p9), Brenner said that in currently available digital TV receivers, manufacturers have chosen to convert digital signal to high-quality analog. Several industries, including motion picture, broadcast and cable industries, have supported inclusion of protected digital interface in all receivers, so content from any digital device could be displayed on TV receiver. But in absence of such digital interface, Brenner said, component analog outputs may be used to deliver high-quality digital content and in that case they will be subject to PHILA copy protection provisions. Therefore, those provisions contain only digital technology, he said. As for CERC objection to mandate that OpenCable digital boxes automatically shut off or degrade image in response to particular copy control signal, he said CERC “ignores” fact that without some affirmative action by cable operator, on program-by-program basis, copy protection restrictions wouldn’t be applied. Option lies with cable operator based on agreements with program suppliers to trigger copy protection capability, he said: “But, by themselves, the devices will not automatically affect images one way or another.”
Broadcasters told Senate Commerce Committee Thurs. that most important action FCC could take to facilitate swift and successful transition to digital TV (DTV) would be to impose full must-carry obligations on cable, move that cable said would be neither lawful nor technically feasible. Committee Chmn. McCain (R-Ariz.) said hearing was to move beyond “finger pointing” among broadcast, cable and consumers, which blame on one another for “dearth of digital programming.” Although they presented various solutions to ensure industry meets its mandated 2006 DTV transition deadline, all remained firm in blaming others for delay.
Congressional telecom leaders heavily criticized spectrum policy changes contemplated by President Bush’s budget blueprint (CD March 1 p1), with some saying they seemed motivated more by attempts to free up money for tax cuts than sound telecom policy. They predicted quick defeat in debacle that probably would teach Administration lesson about talking with them before assuming such far-reaching proposal would gain quick acceptance. “Once Congress kills it, they'll remember to call us next time,” said Ken Johnson, spokesman for House Commerce Committee Chmn. Tauzin (R- La.). “They're just looking for extra money to pay for their excessive tax cuts,” said aide to House Telecom Subcommittee ranking Democrat Markey (Mass.): “The job for Telecom Subcommittee members is to make sure these plans make sense for telecom.” Another staffer said chances of plan’s passing Congress were “infinitesimal” and predicted that it would be greatly scaled back when full budget book is released in April.
House Commerce Committee will introduce new bill “in next month or so” to replace last session’s HR-2420 that would give Bells more regulatory freedom for data transmission and expects easy passage in House but harder job in Senate, Ken Johnson, spokesman for Committee Chmn. Tauzin (R-La.), said Thurs. Johnson, who participated in panel discussion at Precursor Group conference in Washington, urged audience not to “mistake inaction with indecision” on part of Committee because it still was committed to basic HR-2420 concept. Bill probably will be same as last year’s version although it could change during legislative process, Johnson said. Tauzin looks at current version of bill as setting tone for discussion, he said.
Facing “market environment that was simply not conducive to our efforts” to secure additional funding, Geocast Network Systems announced Thurs. that it was ceasing operations, effective immediately. In e-mail to investors and employees late Wed., Chmn.-CEO Joseph Horowitz cited “adverse economic conditions” as reason for closure (CD March 1 p9). He said Geocast would “retain only a small skeleton staff to conduct a sale of our assets.”
House Telecom Subcommittee has scheduled its next 3 hearings, all on Thurs. at 10 a.m. On March 8, panel will review educational technology, which is of special interest to new Chmn. Upton (R-Mich.), in Rm. 2322 of Rayburn. On March 15, it will look at DTV, getting “Private Sector Perspective on the Transition.” On March 29, it will review new FCC Chmn. Powell’s agenda and plans for FCC reform. Latter 2 hearings will be in Rm. 2123 of Rayburn.
House Commerce Committee adopted amended version of “2% carrier” bill (HR-496) by Rep. Cubin (R-Wyo.) Wed. and sent it to House floor. Measure seeks to reduce regulation of ILECs that control less than 2% of nation’s access lines. Committee Chmn. Tauzin (R-La.), before introduction of amendment, said deregulatory bill was “indicative of future action on telecommunications reform.” He said committee and full House last year passed similar bill, which then stalled in Senate.
Proposal by Multi-Assn. Group (MAG) to reform universal service and access charge regulation for rural telcos received mixed reviews by groups filing comments with FCC Mon. Organizations that developed MAG plan -- National Rural Telecom Assn., National Telephone Coop Assn., OPASTCO and USTA -- urged FCC to adopt it as it was written because it “best meets the Commission’s multiple policy goals for rural and insular areas.” However, several state regulatory bodies opposed plan, as did several groups representing consumers and business users. NARUC expressed concern Tues. when its Telecom Committee adopted resolution urging FCC to refer MAG plan to Federal-State Joint Board on Universal Service for further review (CD Feb 28 p6).
For 3rd time in 3 weeks, FCC Comr. Tristani objected to Enforcement Bureau decision not to investigate indecency complaint (CD Feb 14 p7, Feb 9 p7). Latest case involves complaint that show on WGR(AM) Buffalo repeatedly referred to urination. “I am at a loss to explain the failure to even seek further review,” Tristani said.