Mich. PSC approved enforcement mechanism to ensure continued Ameritech compliance with wholesale service performance requirements after it enters interLATA long distance market. Action would conform to FCC findings in previous Sec. 271 cases that effective remedy plan for performance failures was essential to Sec. 271 compliance. PSC in Doc. U-11830 went with Ameritech proposal for performance assurance plan modeled on successful SBC program in Tex., but made some modifications. Agency rejected CLEC-sponsored alternative that included absolute parity floor not tied to Ameritech retail service levels. PSC said it would address CLEC concerns that retail service quality would decline to wholesale level through general service quality enforcement. Maximum annual penalty in fines and rebates is capped at 36% of Mich. gross revenue (about $330 million). PSC rejected variety of penalty exclusions Ameritech sought for conditions beyond its control, waiving penalty only if performance failure was caused by CLEC. PSC also rejected idea of basing penalty escalations on type of failure within each performance area, instead opting for escalation based on number of failures. It said formula in Ameritech’s plan for calculating penalty amounts owed might not produce large enough performance incentive. Rather than change formula, PSC simply said formula result should be doubled. It also said rebates to CLECs should be paid as direct checks, not bill credits.
Denying Southern Linc request to reject applications, FCC Wireless Bureau granted license transfer requests in which Motorola has sought to assign 59 900 MHz specialized mobile radio (SMR) licenses to Nextel. Southern had argued that transaction would decrease competition in trunked dispatch market, making Commission approval of applications against public interest. Southern wanted FCC to take narrow view of market by limiting its examination to impact of deal on trunked dispatch services provided only by SMR operators at 800 MHz and 900 MHz. Nextel offers products that compete with all commercial mobile radio service providers (CMRS). Bureau said it wasn’t necessary to decide whether it must define market that included all CMRS providers because “we conclude that the applications may be granted even assuming narrower market definitions.” Order said: “Nonetheless, we also recognize the increasing convergence of CMRS services and may well adopt a broader market definition in reviewing future transactions.”
As expected, FCC issued public notice Wed. seeking comment on whether its MediaOne merger conditions should still apply to AT&T now that U.S. Appeals Court, D.C., has struck down cable ownership limits as unconstitutional (CD April 12 p2). In 4-page notice, Cable Bureau asked for comments “regarding the effect, if any, of the court’s ruling on the conditions imposed” in last June’s MediaOne order. “In particular, the Commission seeks comment on whether to proceed with the conditions in light of the court’s decision,” notice said. Cable Bureau also set deadlines for comments on notice and related petition for reconsideration of cable ownership decision filed by Consumers Union. Comments are due May 11, replies May 25.
FCC Wireless Bureau plans to convert maritime coast and aviation ground services to universal licensing system (ULS) April 30. Bureau’s ULS is consolidating 11 licensing systems used to process wireless applications in electronic filing system that includes automated checking of applications.
Top Walt Disney executives pressed FCC Chmn. Powell and Commission staffers to impose interactive TV (ITV) open access requirements on cable operators in several recent meetings. Disney Chmn. Michael Eisner, Pres. Robert Iger, Exec. Vp Preston Padden and Vp-Govt. Relations Susan Fox met with Powell, legal adviser Susan Eid and staffs of Mass Media Bureau, Cable Bureau and Office of Plans & Policy, stressing potential for cable operators to discriminate against independent programmers by not providing return path for their ITV offerings. Disney executives also raised concerns about ability of vertically integrated MSOs to favor their own ITV services. In addition, Disney officials pressed their case for FCC to relax its broadcast ownership cap. Meetings, revealed in new ex parte filings at Commission, came just before agency, in response to petition from Media Access Project, extended deadline to May 11 for reply comments in its ITV inquiry (CD April 11 p7).
FCC approved its first batch of low-power FM construction permits, it said in public notice (44965) issued Tues. CPs are for stations in Fresno, LeMoore, Lucerne, N. Edwards, Oroville, Porterville, San Clemente, Smith River, Turlock and Woodland, Cal.; Augusta, Colquitt, Ft. Valley, LaVonia, Louise, Tallapoosa and Trenton, Ga.; S. Bend and Valparaiso, Ind.; Mansfield, La.; Rockland, Me.; Ocean City, Oakland and Sherwood, Md.; Enid Okla.
VoiceStream and Deutsche Telekom asked FCC to amend their pending merger review documents to reflect several licenses that VoiceStream had bought since license transfer applications were filed in Sept. Additional licenses include several that VoiceStream purchased from Cook Inlet Region Inc. and application to transfer control of GTE Wireless of Cincinnati to VoiceStream subsidiary. VoiceStream subsidiaries Omnipoint and VS Washington also have acquired wireless license since application was filed involving DT acquisition of VoiceStream. VoiceStream and DT asked that licenses that DT is acquiring include those recent VoiceStream acquisitions, as well. “The Commission’s staff has now requested that VoiceStream and DT submit an amendment to expressly list in the petition all licenses which have either been acquired or have been proposed to be acquired since the filing of the petition,” companies wrote in April 12 ex parte filing. They said DT’s indirect foreign ownership of VoiceStream’s licensee subsidiaries, including newly purchased assets, wouldn’t violate any Commission rule and “would yield substantial public interest.”
Verizon will offer “simple” long distance calling plans in Mass. that provide services without “gimmicks” inherent in competitors’ plans, company announced Tues. in news conference. “Competitors’ business practices are often confusing and misleading,” full of “hidden charges,” Verizon Long Distance Pres. Maura Breen said. “We will offer honest plans with one call for service with a fair price.”
FCC denied request for stay of assignment order from Norris Satellite Tues. as moot because of nullification of company license for failure to meet milestones. Petition to deny filed by CAI also was denied.
FCC Comr. Furchtgott-Roth expressed optimism Tues. that Commission would get its reciprocal compensation item out “shortly,” although he said he was disappointed with results. “This item has just a dreadful history,” he told reporters at monthly breakfast, referring to order that now is on circulation. FCC order vacated and remanded by U.S. Court of Appeals, D.C., reflected “a mistrust in state government” and belief “that the federal government could do things better,” Furchtgott-Roth said. Citing “unsubstantiated” rationale for federal jurisdiction over certain kinds of traffic, he said that 2 years later item is “frankly much the same result from the Commission.”