Full FCC refused to review Cable Bureau decision denying program access complaint by EchoStar against Speedvision and Outdoor Life Network in order issued Tues. Commission didn’t overturn Cable Bureau ruling that case was not “refusal to deal” or “refusal to sell,” despite EchoStar argument that Bureau made mistake when it said complaint was inextricably intertwined with breach of contract litigation following networks’ cutting off service to EchoStar in Dec. 1998. FCC said EchoStar could refile after court action.
Escalating battle over anticopying encryption technology for advanced digital cable set-top boxes, Consumer Electronics Retailers Coalition (CERC) wrote to FCC Chmn. Powell last week, urging him to break cable industry’s “five-decade monopoly on cable navigation devices.” In 6-page letter to Powell Feb. 12, CERC disputed claims made by CableLabs in its own letter to Powell week earlier and called on FCC to intervene in dispute (CD Feb 14 p7). “As in many cases of deregulation, one cannot expect that the ‘market’ will force an entrenched monopolist, with remaining official power over potential competitors, to offer fair terms of entry to those who would attempt to destroy his monopoly,” group argued. “Thus it is necessary to finish the job of deregulation before competition can be expected to bloom.” Specifically, CERC expressed concerns that CableLabs'PHILA technology license was overly broad, overreaching, discriminated against new entrants. CERC also objected that copy protection provisions of PHILA license: (1) Go beyond digital TV signals to cover analog TV. (2) Mandate that OpenCable digital boxes automatically shut off or degrade images in response to particular copy control signal even if content provider doesn’t want that. (3) Would give content providers “flat, unbridled authority to impose, unilaterally, broad impositions on competitive entrants.” Finally, CERC contended that Commission “has not approved any particular provision” of PHILA license and has not even released final version of license for public comment. Group sought meeting with Powell and his staff to press its case further.
AT&T told SEC in filing Tues. that company had held “exploratory discussions” with Dobson Communications on potential transactions. Last week, AT&T Wireless finalized purchase of $200 million of preferred stock in Dobson. If that series of preferred stock were exchanged into convertible preferred, AT&T Wireless said its stake in Dobson would rise to 11.6% from 4.6%. Dobson and AT&T have evaluated “strategic alternatives” concerning AT&T Wireless’s stake in Dobson, SEC filing said. Among potential options outlined were loans that would be secured with some of Class A shares of common stock that AT&T owns. Another option would be acquisition, merger or asset sale, companies said. Dobson subsidiary won 14 PCS licenses for $546 million in recently completed FCC C-block auction.
ORLANDO -- In highly animated panel discussion at CompTel annual conference Tues., representatives of CLECs, long distance companies, Bell companies and FCC debated whether CLECs had right to charge higher than average access rates and whether long distance companies could refuse to pay those rates. FCC Common Carrier Bureau Chief Dorothy Attwood said Commission had teed up issue by asking for comments but hadn’t decided whether it should step in or let industries settle it themselves. She said there seemed to be industry agreement that Commission should require long distance providers to serve CLEC customers if CLEC access charges fell below certain amount. Dispute is over what upper limit should be.
FCC denied petition for reconsideration by FocuSystems on wireless Enhanced 911 order. FocuSystems had argued that interim benchmarks for activating automatic location identification- capable handsets were “overly burdensome” and shouldn’t apply to carriers that didn’t yet have to meet public safety answering point (PSAP) request for E911 Phase 2 service. Commission said petition didn’t offer basis for reopening issues in E911 proceeding. FocuSystems said interim benchmarks for activating handsets would force carriers relying on handset-based approach for meeting E911 Phase 2 requirements to make sizeable investments before any PSAP in their operating territory could use specific location data. It also asked agency to reconsider part of order that required carriers to reveal technology choice for meeting Phase 2 requirements. Assn. of Public-Safety Communications Officials had opposed petition, saying E911 deployment schedules shouldn’t be pushed back because some technology improvements still were in offing. Agency said it denied petition as “untimely, directed to the wrong decision and without merit.”
First month of Congress yielded little progress on what’s seen as biggest telecom task for both Commerce Committees this year -- finding way to increase broadband deployment. “It’s been a very slow month, and a lot of it was scripted during the last session,” said Cato Institute telecom analyst Adam Thierer. “There’s no surprises [so far].” Broadband deployment is to get immediate attention when Congress returns Feb. 26. “We're hearing from our constituents how important this is,” said Hill staffer. But so far lawmakers have continued to push disparate ideas on subject with little progress made on reconciling various bills. In particular, most onlookers are waiting to see new bill expected from House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.).
Mike Copps took step toward becoming next Democrat on FCC, we're told, when Senate Minority Leader Daschle (D-S.D.) sent letter to White House endorsing former Commerce Dept. staffer for post. Daschle’s office hadn’t returned call by our deadline. Daschle once had been seen endorsing former NTIA Dir. Greg Rohde, but Rohde always had been considered long shot to fill seat now held by Comr. Ness until successor is confirmed. Copps has backing of Senate Commerce Committee ranking Democrat Hollings (D- S.C.) and is widely considered front-runner for next Democratic seat. We're told Andrew Levin, staffer for House Commerce Committee ranking Democrat Dingell (Mich.), probably will have to wait for next Democratic vacancy -- which could be soon, if Comr. Tristani leaves by end of year (CD Feb 16 p4). Although some questioned Copps’s familiarity with telecom issues after years of working on international trade at Commerce, Hollings spokesman assured us that Copp’s portfolio included emphasis on telecom trade issues.
Northpoint and DBS companies were expected to miss Feb. 19 deadline imposed by Congress to conduct tests to determine whether terrestrial service proposed by startup Northpoint could share spectrum in 12.2-12.7 GHz band (CD Jan 31 p3) without causing interference. Meanwhile, FCC issued correction in order setting up testing procedures by companies. Overall testing of equipment and technology has been major sticking point as Commission decides on issuing Northpoint license, both companies agree. “This is the final showdown for all terrestrial systems,” Northpoint CEO Sophia Collier told us: “This will show who has technology and who doesn’t.” Pegasus Vp John Hane said Northpoint legal maneuvering at FCC in effort to get license had been “unprecedented.” He agreed testing wouldn’t be completed in time. There was no word on when results might be finished or made available by Mitre, company hired by FCC to conduct testing. Mitre Engineer James Marshall didn’t return phone calls and company spokeswoman wasn’t up to date on testing procedures.
FCC asked for comments by March 20 on request by City Signal Communications for preemption of regulations by city of Eastlake, O., that City Signal called discriminatory. Company complained that city told it right-of-way authorization wouldn’t be granted unless City Signal paid franchise fee, although other telecom providers don’t have to pay fee. Replies are due April 4.
Sources said 4 FCC commissioners are considering decision that would deny cable must-carry status to electronic program guide (EPG) transmitted over vertical blanking interval (VBI) of local broadcast stations. Prospective ruling in Gemstar case, which pits Gemstar-TV Guide International, broadcasters and CE manufacturers against Time Warner Cable and other cable operators, would follow recent Cable Bureau recommendation that broadcasters’ must-carry rights shouldn’t extend to 3rd party EPGs. Instead of gaining mandatory carriage on cable systems, Gemstar would have to negotiate its way onto systems, just like cable networks and other nonbroadcast services.