By its repeal of ban on dual TV network ownership (CD April 20 p3), FCC is helping TV to become “a vanilla universe with recycled programming and controlled viewpoints,” Alliance for Community Media charged. “The FCC is seeing to it that eventually there will be only one voice in broadcast media,” Alliance Exec. Dir. Bunnie Riedel said. “How can this be good for competition and diversity on the airwaves?” Calling decision “terrible,” she said it “highlights the increasing importance of public, educational and government channels.”
CTIA told FCC, in comments filed last week on reallocation of Ch. 52-59 in 700 MHz band, that it wouldn’t be technically feasible for advanced wireless services to share spectrum with “full-power broadcast licensees.” Comments from wireless and broadcast interests on notice of proposed rulemaking (NPRM) came as recently passed budget resolution retained proposals by President Bush to push back auction dates for both upper and lower band channels of 700 MHz. Rulemaking would reallocate lower 700 MHz band from incumbent analog broadcasters to advanced wireless services. NPRM also proposed retaining broadcasting allocation, which could include what CTIA called full-power broadcast operations. CTIA said that in related auction proceedings for Ch. 60-69, agency had rejected possibility of sharing those frequencies by broadcast and advanced wireless services. “The same conclusion is applicable to the lower 700 MHz band with equal or even greater force, given the large number of broadcast licensees on this band,” CTIA said. “There are simply too many technical, operational and regulatory challenges associated with the sharing of spectrum by full-power broadcast and wireless licensees.” Group said there was “home” for terrestrial broadcast TV services on Ch. 2-51. CTIA also urged FCC to not apply spectrum cap to lower band, which would reflect Commission decision on how Ch. 60-69 would be auctioned to wireless carriers. In other comments, Leap Wireless recommended FCC license and auction spectrum in basic trading area or metropolitan statistical areas, rather than in larger regional areas or through national licenses, which are possibilities on which agency sought feedback. Reallocation of spectrum would be “meaningless” to smaller carriers that serve secondary markets if spectrum were to be auctioned in those larger blocks, Leap contended. Rural Telecommunications Group (RTG) offered essentially same message on importance licensing of “smallest possible geographic areas” to ensure that rural communities weren’t left behind. RTG also urged agency to “provide rural telephone companies with auction incentives,” particularly bidding credits. It said “Commission should establish strict build-out requirements to ensure delivery of service to rural areas and to prevent stockpiling or warehousing of spectrum.” Qwest Wireless said Commission shouldn’t license new broadcast-type services “given the ongoing presence of incumbents. Mobile and fixed wireless services continue to strive to reduce their operating power requirements.” Carrier told FCC that broadcast operations had viable alternatives “and authorizing such services on this spectrum risks burdening new mobile and fixed wireless services.” Qwest said that if FCC decided to allow services other than fixed and mobile wireless in that band, new broadcast-type services should be subject to same technical and service rules, “thus precluding high-power broadcast operations in the spectrum.”
Citing financial woes of mobile satellite industry, CTIA submitted petition for rulemaking at Commission late Fri. to “reallocate underutilized mobile satellite services (MSS) spectrum in the 2 GHz band for more efficient uses.” Petition counters proposal by cellular pioneer and New ICO CEO Craig McCaw, who wants FCC to approve plan that would let him develop terrestrial spectrum using radio spectrum allocated to MSS operators such as New ICO (CD April 4 p1). Petition contends that New ICO’s request “is premised on an admission that MSS alone is not a viable business.” CTIA asked FCC to withhold grant of 2 GHz licenses to existing applicants while it considered petition. If agency decides to reallocate band for other uses, such as terrestrial wireless, it should be done through competitive bidding, group said. “In light of recent evidence that applicants in the 2 GHz band lack a viable MSS business plan, MSS spectrum could be used to help alleviate the shortage of spectrum for other services,” CTIA said. “The Commission should consider whether to reallocate this spectrum to other uses before licensing a category of MSS providers whose offerings may not be economically viable.” Much of petition point up market difficulties that CTIA said MSS providers have experienced, including bankruptcy filing of Iridium. Petition also cited SEC filing documenting $985 million losses that New ICO and Teledesic have suffered since their start. “Despite years of development and massive investment, MSS providers have been unable to make effective use of the extremely valuable spectrum that they received for free,” CTIA said. Petition said entities such as federal govt. users “may be relocated from their existing allocations.” Potential federal govt. relocation is reference to 3rd generation wireless decisions that FCC is examining in 2.5 GHz band, now used by MMDS and Instructional TV Fixed Service licensees, and that NTIA is overseeing in 1.7 GHz band, now used mainly by military.
Rejecting FCC’s interpretation of Telecom Act that no state or local statute could prohibit ability of “any entity” to provide telecom service, U.S. Dist. Court, Abingdon, Va., Wed. invalidated Va. statute that barred localities from competing with commercial providers of telecom services and equipment. Granting summary judgment to City of Bristol, which challenged statute, Judge James Jones rejected U.S. Circuit Court, D.C., interpretation of federal law. Va. statute is “invalid and unenforceable” under Supremacy Clause of Constitution, he said.
CompTel asked FCC to reduce fees that Bell companies charge consumers for changing their presubscribed long distance carriers. Presubscribed interexchange carrier (PIC) charge should be reduced to $1.49 or lower from current $5, CompTel said in petition for rulemaking filed with FCC May 16. CompTel said charge had been at $5 for almost 15 years while cost of making change had fallen to $1.49, which BellSouth now charges. Under proposal, Bell companies would have to file cost support for any tariff calling for a PIC charge higher than $1.49. By charging “inflated” amount to make change, Bells are hurting competition, CompTel said.
Kathryn Brown, ex-FCC chief of staff, named partner, Wilmer, Cutler & Pickering… Jonathan Wald, exec. producer, NBC Nightly News, to exec. producer, Today, replacing Jeff Zucker, now pres.- NBC Entertainment… Perry Schneider promoted to pres., HBO Enterprises, replacing Charles Schreger, resigning… Joseph Zerucha, ex pres.-NSN Network Services, Clear Channel, appointed COO, Tachyon… Gerhard Schuberth, ex-Colt Telecom, named CEO, Update.com, succeeding Gabriele Rittinghaus, resigning… Brooke Coburn, Carlyle Group, joins Net2000 Communications board… Changes at European Bcstg. Union: Stefan Kuerten, controller of sports rights for ZDF German TV station, named dir.-operations, replacing Henri Perez, retiring; Raina Konstantinova, Radio Bulgaria, named dir.-radio, succeeding Thomas Alexanderson, retiring… Karl Meyer promoted to senior vp-integrated mktg., Radio Unica Communications Group… Changes at Spot Image: Jean- Marc Nasr, ex-chmm.-CEO, Fleximage, named CEO, replacing Jacques Mouysset, resigning; Philippe Munier moves up to gen. mgr.
FCC is seriously looking into idea of adopting period of regulatory forbearance or creating “safe harbor” for new, cable- related technologies. Departing Cable Bureau Chief Deborah Lathen told us her staff had done “some additional work” on proposal “at the chairman’s request” after she floated general concept at Commission’s Feb. meeting (CD Feb 23 p2). “We've been doing work on forbearance,” she said in interview between clearing out her 3rd floor office at agency hq Wed. “This is food for thought.”
Senate Telecom Subcommittee Chmn. Burns (R-Mont.), along with Sens. Kerry (D-Mass.) and Hollings (D-S.C.), asked General Accounting Office (GAO) to undertake broad review of radio frequency spectrum allocation. Request came as FCC and NTIA were weighing spectrum decisions for potential 3rd generation wireless allocations. “In recent years, it has become increasingly clear that the present statutory and regulatory framework governing the allocation and use of the radio frequency spectrum does not necessarily result in the most efficient use of spectrum or the rapid deployment of consumer services,” senators wrote in May 16 letter to GAO Comptroller Gen. David Walker. Those policies appear to be jeopardizing ability of U.S. “to continue to lead in the development of wireless technologies,” they wrote, and existing framework needs review and possibly “comprehensive reform.” Senators want GAO to review: (1) How existing spectrum allocation process has evolved and what present legal framework is for determining allocation of spectrum to and among govt. and nongovt. users. (2) Whether federal agencies have processes for ensuring they are using spectrum “in a reasonably efficient manner.” Senators also ask if “defense and nondefense agencies coordinate on spectrum issues in a comprehensive and reasoned way.” (3) How effective are existing spectrum allocation rules and laws enforced by NTIA and FCC in enabling delivery of consumer services and in fostering wireless carrier competition. (4) What are GAO recommendations for improving allocation and management of spectrum and its “recommendations for increasing efficiency of government users of the spectrum so as to maximize the availability of spectrum for commercial users?” Senators asked GAO to complete its review by Dec. 1.
Clarification: Quotation from DirecTV Vp-Govt. Affairs Merrill Spiegel in satellite item (CD May 17 p10) should have read that FCC should proceed to “overturn” (not “overthrow") finding that spectrum sharing between DBS and terrestrial systems was “theoretically possible.”
Pappas Telecasting, which has 4 applications pending for new stations in Ch. 52-59 band, told FCC it was “imperative” that agency act now on “these long-standing applications.” They were filed on or before Sept. 20, 1996, cut-off date, Pappas said, and at that time Commission “expressed its willingness to consider these new broadcast services and its belief that such services would not adversely impact” TV’s pending shift to digital. Pappas, commenting on FCC proposal to auction Ch. 52-59 to nonbroadcast users (CD March 19 p1), said it was “virtually certain” that Sept. auction of Ch. 60-69 would be postponed once again, which would “dramatically alter” FCC’s premise in clearing 698-806 MHz of terrestrial TV stations in preparation for shift to DTV. There currently are 101 analog assignments on Ch. 52-59, plus 112 DTVs, and additional grants would have “a relatively low overall impact” on pending switch to digital transmissions -- now scheduled for 2006, Pappas said: “The DTV transition is certain to slip well beyond 2006. Until then, the public should not be denied new television service.”