FCC Chmn. Powell appointed Mary Beth Richards to spearhead “comprehensive FCC reform project.” Richards, who was given title of special counsel, moves from deputy managing dir. Appointment is first step in Powell’s plan to overhaul agency’s operations (CD Feb 23 p1). In announcing Richards’ appointment Mon., Powell said his goal was to make Commission “more efficient, more decisive and more responsive” to changes in technology. Richards, 17-year veteran of FCC, frequently has been tapped for task forces on organizational changes. In Sept. 1997 she headed team to smooth arrival of 4 new commissioners, including then new Chmn. William Kennard. In 1994 she was involved in “Reinventing Govt.” project that resulted in creation of Wireless and International Bureaus. In early 1990s she was on team that helped implement Cable Act. While in Common Carrier Bureau she served on internal bureau reorganization effort and helped implement Telecom Act. Richards said she would be seeking comments from industry and others on how to make agency operate more efficiently. Powell “takes this very seriously,” she said.
Panel of consumer advocates and industry representatives Fri. blamed everything from regulatory impediments to lack of trained workers for slow progress in bringing long-promised technological improvements to public. Speaking at “policy summit” sponsored by Alliance for Public Technology, Mike Nelson, dir. of Internet technology at IBM, said he didn’t realize how much regulatory uncertainty could impede technology until he entered private sector. USTA Vp Larry Clinton recommended govt. establish national broadband policy to encourage development of high-speed data transmission. PathNet Gen. Counsel Mary McDermott, who was in audience, said lack of trained technicians to develop and manufacture new products was growing problem for technology companies.
FCC extended deadline to March 1 for carriers to file numbering utilization and forecast data for 6 months ending Dec. 31. Waiver was sought by XO Communications, Focal Communications and BellSouth. Companies said they needed time to correct their data, which became “corrupted” when they updated their numbering administration databases.
ISPs are at disadvantage in providing competitive advanced data services because they have to rely on incumbent telcos (ILECs) to offer their customers competitive choice in DSL service, U.S. ISP Alliance (USISPA) said in letter to FCC Chmn. Powell. ISPs “cannot effectively compete if the Commission grants the requests of ILECs to eradicate long-standing FCC restrictions on the bundling of enhanced and basic telecommunications services and customer-premises equipment,” USISPA said. Bundling would allow ILECs to “leverag[e] their persistent monopoly over the local loop into a dominant position within the nascent high-speed Internet access market,” it said. It said ILECs already were gaining competitive advantage by bundling services and equipment.
Legal seminar offered lawyers for last 20 years on day before start of NAB convention is being totally revamped this spring to focus on “a soup-to-nuts” station audit to help attorneys advise their clients “on daily issues from antitrust to zoning.” That’s word to go out SOON to prospective attendees from sponsors NAB, American Bar Assn. Forum on Communications Law and, for first time this year, Federal Communications Bar Assn. Titled “Representing Your Local Broadcaster,” seminar is scheduled April 22 at Bellagio Hotel in Las Vegas. Meanwhile, NAB said FCC Chmn. Powell would speak at Chairman’s Breakfast April 24. Regulatory panel later in day will include FCC Comrs. Furchtgott-Roth, Ness, Tristani.
Some top civil rights leaders active in telecom and broadcasting fields have privately adopted “hands-off” policy during “honeymoon period” of FCC Chmn. Powell and are encouraging political supporters to do same thing, officials confirmed. It’s effort to allow 2nd consecutive African-American FCC chmn. to maintain conservative constituency and “grow into a difficult job” formerly held by William Kennard, “who seemed to always be under attack” from public interest groups, board member of one civil rights telecom group told us. “We don’t want to undermine” Powell agenda, civil rights telecom attorney said: “It’s a conscious choice many of us have made.” FCC officials wouldn’t comment.
While differing on some details, wireless carriers and equipment makers in comments last week urged FCC to make additional spectrum available for 3rd generation and advanced services. Among most pointed recommendations were those of equipment vendors such as Ericsson, Motorola and Qualcomm, which pointed FCC toward spectrum now occupied by federal govt. users in 1.7 GHz band as ideal for 3G. Motorola urged Commission to alter auction process so that part of proceeds could be used to help pay for relocating incumbents. In move that may require legislative change, Motorola said that would avoid pitfall of current system “where the true costs of relocating incumbents only becomes known to successful bidders after the auction.” Several commenters stressed need for FCC to make more spectrum available on faster timeline than that laid out under several agency proposals.
Nine members of Wash. state’s House delegation urged FCC Chmn. Powell to move “expeditiously” on VoiceStream-Deutsche Telekom merger and to keep international trade implications in mind. “There is no way in which this merger reduces competition in the United States or in any way harms U.S. consumers,” bipartisan group of representatives said. Letter was signed by Wash. Reps. Nethercutt (R), Dunn (R), Dicks (D), Hastings (R), Smith (D), Inslee (D), McDermott (D), Larsen, Baird. Members also said European Commission recently urged U.S. to abide by its World Trade Organization basic telecom agreement commitments. “If the FCC were to disregard those commitments, or to interpret U.S. law or its rules in a manner that conflicted with those commitments, the FCC would start a trade war that could damage exports in any sector of the U.S. economy, not just telecommunications.”
Ameritech local exchange competitors warned Ill. Commerce Commission (ICC) that Ameritech local customers could face another service quality meltdown this summer as result of what it charged was company’s systematic underspending on its infrastructure for last decade, a claim Ameritech disputed. CLEC-supported Ill. Coalition for Competitive Telecom Thurs. released AT&T- commissioned study by Chicago telecom consultant Gregory Busch that reviewed Ameritech’s ARMIS reports to FCC 1988-1999. Report said that for most of 1990s, after Ameritech moved to relaxed price cap regulation, company on average spent 25% less per line on capital improvements than Bell companies in other regions. Busch’s report said data indicated Ameritech management took advantage of lenient regulation by shortchanging network to bolster profit margins. “SBC bought a system with serious problems, and years of neglect cannot be corrected in a few months. The system will fail again once service demand increases,” Busch said. He said demand for new and relocated wholesale and retail phone service in Ill. rises in peak moving season in spring and summer months. Ameritech Pres. Edward Meuller, who came on board after SBC-Ameritech merger, said company had kept its promises to improve service and met ICC service standards in Jan. He didn’t comment on company’s investment history before acquisition by SBC, saying carrier was focused on continued improvements in customer service to ensure no repeat of last summer’s installation and repair delays. ICC Chmn. Richard Mathias said agency had concerns about Ameritech’s capacity to handle service orders and repairs and had sent questionnaire asking about role that condition of infrastructure played in company’s service performance. “We'll be watching their performance closely,” he said. ICC recently penalized Ameritech $34 million for its retail service failures in 2000 and Tues. fined company $1.2 million for failing to provide adequate wholesale service in last part of 2000, bringing total fines for wholesale service performance failures in 2000 to $6.3 million Sustained service quality improvement is critical for Ameritech now for 2 reasons: (1) Ill. legislature is considering bill (SB- 134) to replace expiring Ill. regulatory law with new statute that would deregulate Ameritech’s business services and minimally regulate residential service. (2) Ameritech recently advised ICC that it planned to ask this summer for agency’s endorsement of Sec. 271 interLATA long distance entry.
CTIA filed challenge in U.S. Dist. Court, D.C., Fri. on scope of Advisory Council on Historic Preservation’s (ACHP) authority to promulgate rules that bind FCC. CTIA is challenging final rule that ACHP adopted Dec. 12 that implements Sec. 106 of National Historic Preservation Act (NHPA). Act covers regulations on siting and environmental impact designed to ensure that facilities, including wireless towers, have no adverse impact on historic properties. CTIA, in complaint that names ACHP, its Chmn. Cathryn Slater and Exec. Dir. John Fowler, wants court to review final rule. CTIA argued that regulation was beyond scope of ACHP’s rulemaking authority under NHPA. CTIA also challenged rule as arbitrary and capricious, unconstitutional and “otherwise not in accordance with law.” It said wireless carriers were adversely affected by rule because it favored “intensive government oversight and unwieldy bureaucratic procedures to ensure that the goals of the NHPA are satisfied.” Final rule is at odds with “statutory mission” of FCC and telecom industry, CTIA said. Assn. said final regulation threatened to undermine purpose of Communications Act, “particularly as it applies to fostering the rapid growth and development of wireless communications infrastructure.” Complaint argued that ACHP’s role was advisory under NHPA and that final rule had expanded its authority unlawfully. Federal agencies, not advisory councils, have authority to adopt regulations implementing siting requirements of Sec. 106, CTIA contended. Complaint apparently doesn’t alter agreement reached earlier this year between wireless industry and govt. policymakers, including ACHP, on how tower siting issues should be handled for colocation of equipment at existing sites.