For 2nd time in week, FCC Comr. Tristani criticized Enforcement Bureau for dismissing indecency complaint. Latest complaint involved language on WRLR(FM) Hueytown, Ala., which Bureau said was “certainly offensive, but not indecent.” Tristani said complaint raised “prima facie case for indecency,” as well as constituting personal attack. “It is difficult to discern what more specific allegations are necessary to state a prima facie violation under the statute,” she said. Earlier case involved KLOU(FM) St. Louis (CD Feb 9 p7).
FCC began process that could lead to revoking licenses of WSTX(AM/FM) Christiansted, Virgin Islands, for operating with unauthorized antennas and improper power levels. Commission ordered administrative law judge evidentiary hearing on issue, but date hasn’t been set. In unrelated action, FCC proposed to fine Citicasters $25,000 for taking control of WBTJ(FM) Hubbard, O., without prior Commission approval.
FCC denied petition by Operator Communications (Oncor) for forbearance of rule requiring that contributions to federal universal service fund be based on carrier revenue from prior year. Oncor contended that basing contributions on prior-year revenue harmed carriers with declining revenue. It asked FCC to forbear from assessing revenues for years 1998-2000 and then reassess contribution based on actual revenue for those years. Commission said requested action would give unfair advantage to carriers with declining revenue. FCC Comr. Furchtgott-Roth issued statement agreeing with FCC’s denial but emphasizing that problem raised by Oncor was serious: “Because carriers contribute to the universal service fund based on the prior year’s revenues, those carriers whose revenues have declined find themselves paying a higher percentage of their current revenues… than do carriers with stable or increasing revenues.” He said end-user surcharges could be “promising solution.”
Three-judge panel of Cal. Court of Appeals ruled that nothing in federal law or FCC policy preempted state courts from awarding damages in false advertising lawsuit against 2 Southern Cal. cellular providers. Appeals Court dismissed claims by cellular carrier industry that federal law barring state rate regulation of wireless services also denied state courts jurisdiction over anything that might directly affect wireless rates, such as civil damage awards. Ruling grew out of 1998 lawsuit in Cal. Superior Court, L.A., (Marcia Spielhotz et al. v. Los Angeles Cellular/AT&T Wireless) in which plaintiffs accused cellular carriers of false advertising and breach of contract because they claimed to have seamless coverage across Southern Cal. but failed to disclose dead zones within their coverage area where phones wouldn’t work. Lower court dismissed case on ground it lacked jurisdiction to award damages. Appeals Court Judges Walter Croskey, Joan Klein and Pattie Kitching in Case B-131655 directed lower court to vacate its order disclaiming jurisdiction and to schedule case for hearing. Appeals Court addressed only where case should be heard, not merits. Current FCC policy says there’s no blanket preemption in federal law to preclude state court damage awards against cellular companies in lawsuits over consumer protection, misrepresentation and contracts, but facts of each individual case would determine whether state damage awards were permitted.
Planned review of Canadian telecom regulator Canadian Radio- TV & Telecom Commission (CRTC) will examine whether parts of media and telecom industries can be deregulated and how regulatory process can be streamlined, senior govt. official said. “There used to be neat, tidy compartments between computers and broadcasting and telecommunications. That’s no longer the case. It’s time to take a look at this,” he said.
CTIA Pres. Thomas Wheeler said Tues. that wireless carriers were eyeing 1.7 GHz spectrum occupied by military users as “first choice” for obtaining more spectrum for 3rd-generation services. He and former FCC Chmn. Reed Hundt, now senior adviser with McKinsey & Co., spoke at New America Foundation lunch on wireless spectrum shortage. Turning to 1755-1850 MHz band would add to “global harmonization” of wireless bands used beyond U.S., Wheeler said, and 2500-2690 MHz band occupied by Multichannel Multipoint Distribution Service operators would be “2nd choice.” FCC and NTIA are looking at both bands as potential source of additional spectrum for next-generation services such as 3G.
Promotions at Space Systems/Loral: Patrick DeWitt advanced to exec. vp; Christopher Hoeber moves up to senior vp-business development & strategy; Neil Barberis promoted to senior vp- spacecraft programs; Robert Owiesny advanced to senior vp- engineering and manufacturing; Ronald Haley moves up to senior vp-finance and administration… Joshua Paul, ex-Cowan, Leibowitz & Latman, named partner, Morgan, Lewis & Bockius… Vaikunth Gupta, Wisor, joins FCC’s Packet Switching Data Reporting and Analysis Focus Group… Cynthia Miller promoted to vp-human resources and administration, Showtime Networks… Changes at Cox: Lamis Hossain, ex-Coca-Cola, named CIMedia in-house counsel; Glenn McLaren advanced to city site mgr. of San Antonio Web site sa360.com… Susan Fox, ex-FCC, named vp-govt. relations, Disney… Changes at Harmonic: Michael Moone, ex-Cisco, appointed COO; Yaron Simler moves up to pres.-Convergent Systems Div… James McLoughlin, ex-HBO, named vp-affiliate sales, WorldGate… Gary LeJeune, ex-Equant, appointed vp-sales, NTT America… Marc Smith, ex-Phillips Business Information, named senior dir.- communications, NCTA… Rob Glaser, chmn.-CEO of RealNetworks, will keynote April 23 TV lunch during NAB convention in Las Vegas at which ABC Nightline host Ted Koppel will be inducted into Bcstg. Hall of Fame, and retiring MSTV Pres. Margita White will receive NAB Spirit of Bcstg. Award.
FCC asked for comments on separate requests to stop providing services filed by WorldCom and OpTel. Agency said comments are due March 2 on WorldCom request to discontinue its Metromedia, MFS Intelenet, Online and Travel card services. WorldCom said it doesn’t have any customers enrolled in those services. Comments are due Feb. 22 on OpTel’s request to stop providing telephone operations in Ariz., Cal., Colo., Fla. and Ind. because it’s in bankruptcy reorganization.
Several wireless carriers told FCC that any steps to pave way toward development of secondary wireless market should rely on simple leasing rules, not existing limits such as spectrum cap restrictions. They strongly urged agency not to apply spectrum cap or unjust enrichment rules to lease deals. One theme among smaller carriers is that leasing arrangements can give them entree to truly compete in auctions because they could use proceeds from transactions to build out markets while retaining license ownership. Commenters on notice of proposed rulemaking (NPRM) on secondary wireless markets differed on details, including how regulatory requirements of original licensee should apply to lessees.
Mark Crosby, longtime pres. of Industrial Telecom Assn., is stepping down to head Access Spectrum, separate guardband bidding unit set up last year by ITA, Motorola, others. He also will remain senior policy adviser to ITA. ITA spokesman said move was “strategic shift” designed to “make sure Access Spectrum succeeds as a healthy source of frequency coordination for ITA.” ITA “already has been molded,” allowing Crosby to concentrate on unit that as band manager paid $69 million for 19 licenses in guardband auction, spokesman said. Crosby, who joined ITA’s predecessor Special Industrial Radio Service Assn. as intern 31 years ago, has been pres. for 26 years. He will be succeeded by ITA Exec. Dir. Laura Smith, ex-FCC staffer who moved to ITA in 1998. Smith worked at FCC for 8 years in Mass Media and Wireless bureaus.