FCC strengthened its line sharing rules in an order released Mon. that acts on petitions for clarification or reconsideration of rules agency adopted last year. Among changes adopted in new order: (1) Line sharing applies to entire loop, even where portion of loop is on fiber facilities. (2) ILECs must provide line splitting so competing carrier can provide voice and data over same line either by itself or in partnership with data carrier.
In much-anticipated announcement, President Bush tapped FCC Comr. Powell as chairman Mon., just days after departure Fri. of FCC Chmn. William Kennard. Powell, who has been on FCC since Nov. 1997, had been widely viewed as front-runner for post, although official word didn’t come until White House spokesman Ari Fleischer announced appointment at news briefing Mon. Separately, executive memorandum issued by Bush Chief of Staff Andrew Card began circulating more widely at FCC Mon. Though it wasn’t clear how much authority Executive Branch has over decisions of independent agencies like FCC, memo is intended to suspend regulations that agencies have approved recently but which haven’t yet been published in Federal Register.
LAS VEGAS -- Mandatory digital tuners in TV sets was subject of sharp exchanges at ALTV panel here Mon., with CEA Pres. Gary Shapiro arguing that consumers shouldn’t be required to buy unwanted tuners while Cox TV Pres. Andrew Fisher said mandatory tuners were “a must… if we're going to get this [DTV] going.” Paxson TV CEO Lowell Paxson said “I'm ready to go to the Supreme Court” on tuner issue, saying All-Channel Receiver Act passed by Congress in 1964 requiring UHF tuners “is the law.” Paxson also got into exchange with panelist Susan Fox, deputy chief of FCC Mass Media Bureau, on what he said was agency’s slowness in acting on DTV applications by TV stations.
FCC voted Fri. to approve SBC’s Sec. 271 application to offer long distance service to customers in Kan. and Okla., agency said late Mon. Commission said action wouldn’t become effective for 43 days to permit pricing amendments, filed recently by SBC, to become effective. Ex-FCC Chmn. William Kennard cast his vote before leaving Fri. New Chmn. Powell dissented in part because he disagreed with 43-day delay.
Broadcasters on TV Ch. 52-69 should have to give back their analog channels Dec. 31, 2006, regardless of whether 85% of U.S. households have access to DTV, outgoing FCC Chmn. William Kennard said in letter to Congress, and broadcasters on other channels should begin paying escalating spectrum fee to continue analog broadcasts. Changes were among several that Kennard proposed to Congress as way to speed DTV transition.
BURBANK, Cal. -- Saying current economic slowdown “is just a speed bump” and new technology offers his company exceptional opportunities, Disney Pres.-COO Robert Iger told us “we have a feeling of exhilaration at the Disney Co. right now… as a company, we're extremely optimistic.” He said, “I think the economy is still sound [but] a feeling of pessimism” has set in among industry executives and national advertisers that’s causing concern. “It’s still too early to tell” about overall TV economic performance in 2002, Iger said.
Paxson Communications urged broadcasters Fri. to oppose Verizon Communications request that FCC postpone upcoming 700 MHz auction at least 2 months, but ideally until Sept. 6. Auction, which had been set for last Sept. 6, now is scheduled for March 6, with short-form applications due Feb. 2. FCC Wireless Bureau is seeking comments on request until Jan. 24, after Verizon Wireless wrote to Bureau Chief Thomas Sugrue, arguing that if auction were held as scheduled, participants wouldn’t have enough time to assess their interest in acquiring additional spectrum, in part because C-block PCS auction that started Dec. 12 was continuing (CD Jan 19 p9). Paxson urged broadcasters, particularly incumbents in Ch. 60-69 spectrum, to oppose request for delay, noting that bidding already had been delayed 3 times. “We cannot support a 4th delay of the 700 MHz auction,” Chmn. Lowell Paxson said. “This most recent action by Verizon will put the continuation of the information revolution in the U.S. in grave jeopardy.”
Bidding in FCC’s C- and F-block PCS auction continued to edge up in small increments Fri., with total hitting $16.8 billion. Bids for top 3 participants were little changed, with Verizon Wireless at $8.9 billion, AT&T-backed Alaska Native Wireless $2.8 billion and Cingular Wireless-backed Salmon PCS $2.4 billion. DCC PCS had $539.4 million, followed by Cook Inlet/VoiceStream GSM with $510.4 million, VoiceStream PCS with $479.4 million, and Leap Wireless with $342.3 million. Competition appeared to have cooled somewhat for N.Y.C. licenses, whose highest bids have remained unchanged for last several rounds. Verizon has top bids of $2.05 billion and $2.03 billion for 2 licenses in that market, with Alaska Native Wireless bidding $1.5 billion for 3rd. Verizon also has top bids for licenses in L.A. and Chicago, at much lower price levels of $513.5 million and $494.6 million, respectively. Auction for 422 licenses began Dec. 12 and has gone 73 rounds, with FCC stepping up bidding last week to 6 rounds daily from 4 to accelerate pace. Among 15 most populous markets, Verizon Wireless has high bids for 9 licenses, Alaska Native Wireless for 2, Salmon PCS for 3 and DCC PCS for one in Washington.
“I'd rather be a man of principle than a man of politics,” departing FCC Chmn. Kennard said Fri. in response to criticism of his administration (CD Jan 19 p1). “It’s a sad commentary on Washington that one can be considered too nice,” remarked ex-FCC staffer who now is communications attorney. Kennard spent day in variety of going-away activities including lunch where he presented his senior staff with “certificates of appreciation” and afternoon party attended by several hundred people from inside and outside FCC. Amid music by jazz band, Kennard was spoofed by variety of people. Mass Media Bureau Chief Roy Stewart gave him “first low-power radio license” for station WWEK (Kennard’s initials) which will broadcast “150 feet between Kinkos and the 7- 11.”
FCC hit Callais Cablevision with $133,000 fine late Fri. for repeatedly violating Commission’s cable signal leakage rules, largest amount ever assessed against cable operator for such problems. Agency found that Callais, which runs cable system in Grand Isle, La., violated leakage standards in tests on 3 separate days early last year, interfered with FAA aircraft approach frequencies, didn’t perform leakage tests on time and didn’t install necessary equipment to correct problem in time. FCC said Callais system, unlike MediaOne Detroit system fined $55,000 for signal leakage violations last year, deserved record fine because it showed “almost complete disregard for the rules designed to protect air traffic safety, including failure to offset frequencies and failure to make annual measurements to verify compliance with the basic leakage performance criteria.” Callais has 30 days to challenge fine.