Rep. Oxley (R-O.) may have lost his bid to lead Commerce Committee, but he still could have influence on telecom policy. He introduced bill (HR-235) to require FCC to eliminate its restrictions on newspaper-broadcast cross-ownership. Meanwhile, Rep. King (R-N.Y.) offered bill that would authorize FTC to issue new regulations on telemarketers. He has 9 initial co-sponsors, including Oxley. Also, two more lawmakers quickly brought back bills from last year: (1) Rep. Portman (R-O.) reintroduced his bill to repeal 3% telephone excise tax (now HR-236), with 30 initial co-sponsors. Bill passed House by 420-2 vote last year but never got vote in Senate. It then was folded into appropriations legislation that was vetoed by President Clinton. Bill again will go through Ways & Means Committee. It’s expected to get more favorable reception from incoming President Bush. (2) Rep. Holt (D-N.J.) reintroduced his measure (now HR-113) to prevent spamming on wireless devices. Introduced late in last session, Holt’s bill never got serious consideration.
As FCC readies long-anticipated inquiry into unifying carrier compensation methods, telecom industry appears less than united on how -- or even whether -- it should be done. FCC official said at news briefing Mon. that if Commission approved Notice of Inquiry proposed by Common Carrier Bureau, it would open proceeding that probably would take “several years.” Some industry representatives have urged agency to begin proceeding, saying it doesn’t make sense economically to have so many disparate intercarrier compensation methods. But others question value of rationalizing those different plans such as access charges, reciprocal compensation and various forms of wireless interconnection charges.
FCC Chmn. Kennard will announce his resignation as soon as Commission votes on AOL takeover of Time Warner, which is expected this week, Commission source told us. Kennard’s term expires in June but he was expected to leave once George Bush was sworn in as President Jan. 20. It will be up to Administration to decide whom to name as interim FCC chairman until permanent replacement for Kennard is appointed. FCC Comr. Powell is expected to be tapped but he hasn’t confirmed that. Source didn’t say when Kennard actually was leaving or reveal where he planned to work once he left. He moved to Commission from Verner, Liipfert, Bernhard, McPherson & Hand, where he was partner.
FCC, CPB and others that live off spending bills have new House Appropriations Committee subcommittee chairmen to lobby. House Republicans named Rep. Wolf (Va.) to head Commerce-Justice panel, replacing Rep. Rogers (R-Ky.), who moves to chmn. of Transportation Subcommittee. Rep. Regula (R-O.) takes spot of retired former Labor-HHS Chmn. Porter (R-Ill.). Among others, Rep. Taylor (R-N.C.) takes Legislative Branch panel and Rep. Istook (R-Okla.) gets Treasury-Postal. Other key committees hadn’t named subcommittee heads yet. On House Judiciary panel, it’s expected that Rep. Coble (R-N.C.) will keep his Courts and Intellectual Property post. Rep. Gekas (R-Pa.) reportedly is angling for Crime subcommittee vacated by former Rep. Bill McCollum (R-Fla.), and Rep. Smith (R-Tex.) is seeking Constitution panel once held by former Rep. Canady (R-Fla.). Senate Commerce Committee is likely to stay at 20 members, now split 10-10 instead of 11-9, Committee source said. That would allow addition of 2 Republicans and 2 Democrats, not accounting for any defections. We're told Senate Majority Leader (for another 2 weeks) Daschle (D-N.D.) could appoint Democratic slate as early as Thurs. Sources said Sen. Edwards (D-N.C.) is almost certain to be on it. Edwards introduced Internet privacy legislation last year, and N.C. has considerable high-tech constituency, so Edwards would be expected to follow Internet rules closely. Sources were less certain about other Democratic opening, although speculation has centered on newly elected Sen. Cantwell (D-Wash.), who defeated Commerce Committee member Slade Gorton (R-Wash.) and represents one of most technology-intensive states.
Pa. PUC gave Verizon “passing grade” after reviewing final report from KPMG Consulting on tests of carrier’s operation support systems (OSS), even though “some deficiencies” remain to be corrected. But PUC also made clear that its ultimate decision on whether to endorse any Verizon Sec. 271 interLATA long distance application to FCC would depend in large measure on how well company did in addressing OSS deficiencies and filling commercial CLEC service orders in next 3 months. KPMG told PUC Verizon had “passed sufficient operational aspects” to conclude test program. PUC’s Fri. action set stage for 100-day period during which agency will monitor Verizon’s commercial OSS performance and review its compliance with non-OSS-related market-opening requirements of Telecom Act’s 14-point checklist. Verizon said it was “pleased the PUC deemed the final KPMG report as a passing grade… We're confident that when all the evidence is examined, the PUC will support our long distance application to the FCC.” However, local rival AT&T said that unless PUC addressed gaps and “questionable metrics” in KPMG test results, Pa. could be vulnerable to same OSS glitches as hit Verizon in N.Y. after its long distance entry there. AT&T said Verizon was rushing to meet self-imposed “artificial deadline” for long distance entry and “hasn’t done all its homework when it comes to system readiness” for large volumes of CLEC service orders.
EchoStar could receive valuable Ka-band slot over continental U.S. if FCC approves request from VisionStar to transfer its Ka- band satellite slot to company, VisionStar said in Dec. 15 filing at agency. If Commission agrees, VisionStar/EchoStar partnership would take control of satellite licenses at 113 degrees W, directly over continental U.S. Commission granted VisionStar license for slot in May 1997 in first round of Ka-band allocations.
Gemstar International Group took fresh shot at Time Warner (TW as FCC continued to ponder AOL’s pending acquisition of TW. In 2-page letter to FCC Thurs., Gemstar, which has been sparring with TW over MSO’s temporary blocking of Gemstar’s electronic program guide on TW cable systems last year, warned Commission that cable operator easily could do same thing again because it had shown no remorse. Despite TW’s June “decision to desist from stripping,” Gemstar said, TW “neither acknowledges that stripping is a violation of the FCC’s rules and policies, nor undertakes that it will not resume stripping without awaiting definitive FCC action.” Gemstar urged Commission to “deal with the issues” raised “regarding the anticompetitive nature of Time Warner’s behavior” before approving AOL-TW deal. Specifically, Gemstar wants agency to impose conditions on AOL-TW prohibiting it from discriminating against rival interactive TV content providers.
To no one’s great surprise, cable TV remains dominant technology for delivering video programming to consumers, according to 7th annual video competition report adopted last week and released by FCC Mon. Commission found that cable industry totaled 67.7 million subscribers in June 2000, up one million (1.5%) from 66.7 million in June 1999. But DBS continued to make steady inroads in cable’s market share, adding almost 3 million subscribers over same period to reach nearly 13 million last June, up 29% from year earlier. Largely as result, cable operators now control 80% of burgeoning pay-TV market, down from 82% year earlier, while DBS providers now command growing 15.4%.
PASADENA -- Threatened strike against TV networks this spring by Writers Guild of America (WGA) and other unions (see separate item, this issue) was a major topic of conversation here as Pax TV, UPN and WB kicked off semiannual round of questions and answers with TV critics. “Everyone that’s involved on both sides says there’s going to be a strike,” WB CEO Jamie Kellner said. “I have no involvement whatsoever, so I say there’s not going to be a strike. I think there’s going to be a lot of reasons to avoid a strike.” He and UPN executives said they had contingency plans in place in case there was strike, including at least 4 “reality” programs under development by WB, plus advantage of being able to add movie night by using affiliate Turner Bcstg.’s huge library of films.
White House formally renominated FCC Comr. Ness again for new term, throwing her bid to stay on Commission back to Senate Commerce Committee for consideration. Ness was renominated last year, but Committee Chmn. McCain (R-Ariz.) never scheduled confirmation vote, and she currently functions under recess appointment that expires as soon as another commissioner is appointed. If cleared by Committee, Ness’s 5-year term would start from July 1, 1999, expiration of her last one. However, Commerce Committee spokeswoman said panel would concentrate on confirming Bush cabinet members before considering Ness’s situation.