E-rate program won’t be folded into block grants to states along with Education Dept. technology programs in Bush Administration’s initial proposal to Congress, but that doesn’t mean it won’t meet that fate later, Education Dept. spokeswoman told us. E-rate supporters were cheered this week by Education Secy. Roderick Paige’s comments at House hearing that e-rate wouldn’t be included. But spokeswoman told us that was just for logistical reasons, since e-rate wasn’t funded by Education Dept. and no final policy decision had been made. “We are considering - - and continue to consider -- if the e-rate can or should be consolidated with other technology grant programs,” she said. “The fact that the e-rate is not in the Department’s jurisdiction makes the considerations different.” Several House Telecom Subcommittee members defended e-rate at Thurs. hearing. Ranking Commerce Committee Democrat Dingell (Mich.) said tinkering with e- rate would be “disaster for schools and libraries everywhere, but particularly those in the neediest areas of the country who have come to rely so heavily on this program.” However, Dingell also renewed his concerns that some telecom carriers might be over- collecting for e-rate and pocketing the difference. Subcommittee ranking Democrat Markey (Mass.) also backed e-rate, as did several witnesses. Meanwhile, Dingell said he would reintroduce his bill to use money from phone excise tax (estimated $6 billion per year) to pay for digital divide trust fund while excise tax was phased out over period of several years. He said some of that money could be used to strengthen NTIA’s Technology Opportunity Program (TOP), which is favored by Subcommittee Chmn. Upton (R-Mich.). Dingell said he would reintroduce bill with Rep. Towns (D-N.Y.) “in the near future” and hoped to work with Upton on it. He also took indirect swipe at FCC Chmn. Powell, who has questioned existence of meaningful digital divide. He said Powell’s father, Secy. of State Colin Powell, was member of board of PowerUp, “whose explicit mission is to close the digital divide. So it appears that at least the elder Powell would agree the digital divide issue is an important one.” Upton said he would focus on several education technology programs this year, not just e-rate and TOP. He singled out Instructional TV Fixed Service (ITFS) licenses, saying they were “very much on our Subcommittee’s radar screen as our nation grapples with spectrum management issues.” Full Committee Chmn. Tauzin (R-La.) said he wanted “every child in Louisiana to have access to the Internet” before he leaves Congress. However, he also said it was “important to understand” that closing digital divide “is not strictly dependent upon federal support,” praising companies such as WISH-TV that make voluntary contributions of Internet access.
FCC Wireless Bureau said it modified its universal licensing system (ULS) to help auction winners file for tribal land bidding credits. Changes include screens to signal intent to seek credit when filing long-form applications for license at close of auction, ULS ability to select tribal lands to be served in each market, submission of required tribal govt. certification. Last June, FCC created tribal land bidding credit program for future auctions to provide incentives to wireless carriers to serve those lands. Eligible bidders for credit commit to use license to supply service to tribal lands that are unserved by any carrier or have wireline subscription rate equal to or below 70%.
Network Affiliate Stations Alliance (NASA) -- long at odds with Big 4 TV networks on station ownership cap -- declared war on another front by asking FCC to open inquiry into what it charged were “unlawful network tactics and practices.” Immediately after personally delivering petition to commissioners Thurs. (11:30 a.m. appointment with Chmn. Powell), NASA leaders took their argument to members of Congress who, they hope, will pressure Commission to act. Members of NASA are affiliates of ABC, NBC and CBS, and they also asked FCC to look into Fox actions.
FCC postponed auctions for FM reserved band allotments until Dec. 5, from originally scheduled May 9, in notice issued late Wed. Commission also lifted FM minor change application freeze announced Jan. 19 that was to continue through March 19. FCC cited “reasons of administrative convenience” for delay. Form 175 for Dec. 5 auction now is due Sept. 24 -- 717-338-2888.
Moody’s assigned B2 rating to pending issue of senior subordinated notes by American Cellular, joint venture owned equally by AT&T Wireless and Dobson Communications. Moody’s said proceeds from proposed subordinated notes would be used, in part, to repay $200 million of bank debt. It said planned issue marked “sound financial management.” Moody’s said rating assumed that American Cellular would use financial flexibility of offering “with prudence” and that venture “does not become a vehicle for the launch of additional PCS properties, such as those Dobson recently won at auction from the FCC.”
FCC has “all the information it needs” to specify cost recovery mechanism for carriers’ number pooling costs, National Exchange Carrier Assn. told Commission in March 7 reply comments. NECA also urged FCC to let carriers recover those costs through “existing means” such as interstate access charges.
Elizabeth Lyle, ex-FCC, named vp-disability access and technology practice, Wallman Strategic Consulting… Robert Nichols, ex-Electronic Industry Assn., joins Treasury Dept. as deputy asst. secy. for public affairs… Robert Friedman, ex-New Line, named pres., AOL TV… Changes at Tribune Bcstg.: Patrick Mullen advanced to pres., Tribune TV, replacing Michael Eigner, who moves to pres., Tribune Cable; Peter Walker steps up to senior vp-Tribune TV; John Reardon promoted to west coast regional vp… William Weiss, Promar Group, joins International Telecommunications Clearing Corp. advisory board… Beth Hampton, ex-American Chemistry Council, named vp-membership mktg., CTAM… Steven Green, ex-U.S. ambassador to Singapore, appointed to Asia Global Crossing board… Natasha Cohen promoted to dir.-business development, Digital Media Group, Showtime Networks… Robert Long, vp-news, WRC-TV Washington, moves to vp-news and operations… Pamela Bertino advanced to vp-gen. mgr., Weatherscan Local, Weather Channel… Christopher Kelly promoted to gen. mgr., DiscoverOmaha.com, Cox Interactive Media… Arthur Sando, ex- Winstar, named senior vp-communications, CBS Enterprises.
Mike Copps, longtime aide to Sen. Hollings (D-S.C.), has “a lock” on appointment to one of 2 Democratic seats soon to open up on FCC, according to prominent Democrat. Giving credence to that position is statement to us by Senate Republican that Commerce Committee Chmn. McCain (R-Ariz.) has told Hollings (former Commerce Committee chmn. when Democrats controlled Senate) that he could fill Democratic seat. Copps left Hollings’ staff last year to become asst. secy. of Commerce for international trade (CD Feb 1 p1). Candidates for other Democratic seat include front-runner Andy Levin, aide to Rep. Dingell (D-Mich.), former chmn. of House Commerce Committee.
FCC Wireless Bureau plans to auction 14,000 licenses in lower paging bands of 35-36, 43-44, 152-159 and 454-460 MHz on June 26. Auction also covers 1,514 licenses in upper paging bands of 929- 931 MHz that remained unsold in auction that closed March 2. FCC is seeking comment on several proposals by March 19, with replies due March 26: (1) To award licenses in single, simultaneous multi-round auction. (2) To make upfront payments equal to minimum opening bids. FCC proposes that amount of upfront payment determine bidding units on which participant can place bids.
Conn. Dept. of Public Utility Control (DPUC) asked FCC to authorize trial of service-specific area code overlay for wireless carriers and any other providers not capable of local number portability. Petition didn’t specify whether overlay should go atop 203 (New Haven) or 860 (Hartford) code, both of which are projected to run out of numbers by end of 2002. DPUC said its request was based on Dec. FCC request for comments on using service- or technology-specific area codes as relief tool. If FCC grants permission for test, DPUC will determine which depleted code would get wireless overlay. If 203 were chosen, new code would be designated 475; if 860 is chosen, new code would be 959. DPUC said service-specific overlay would delay need for further code relief for “extended period” of time.