Verizon Wireless fired the latest shot Thurs. in the long dispute among carriers about wireless local number portability (LNP) implementation. The largest U.S. mobile operator, Verizon Wireless opposed a petition to the FCC by 5 competitors that asked the agency to review recent guidance from the Wireless Bureau on LNP implementation issues. In arguing the FCC should turn down its rivals’ arguments, Verizon Wireless said they would “transform LNP into a tool for restricting customer churn rather than enhancing customers’ freedom to switch carriers.”
Notable CROSS rulings
The Aug. congressional recess isn’t likely to be relaxing for network lobbyists, who are trying to slow the momentum for rolling back broadcast ownership caps. With the Senate scheduled to vote to throw out all of the FCC’s controversial media ownership rule changes, network backers said they would use the month to try to change the direction of the nationwide media ownership debate. And while both sides acknowledge that it’s still uncertain what, if anything, Congress will do on media ownership rules, it seems clear that the impact of the issue on Capitol Hill has surprised many and seems likely to carry over into other media issues.
As expected, the Network Affiliated Stations Alliance (NASA) and the NAB filed separate notices with the U.S. Appeals Court, D.C., of their plans to seek reversal of portions of the FCC’s new ownership rules (CD Aug 6 p11). Neither association detailed its arguments, saying the positions would be argued later. Media General, which owns TV stations and newspapers, also filed a notice of appeal in the same court on the newspaper-broadcast cross-ownership restrictions.
Senate Commerce Committee Chmn. McCain (R-Ariz.) predicted that the “congressional veto” of the FCC’s media ownership rules would pass the full Senate. Sen. Dorgan (D- N.D.), who introduced the “resolution of disapproval” (S.J. Res.-17) said the Senate was likely to vote on the veto when it returned in Sept. (CD July 30 p2). McCain said he was “leaning towards” voting to veto the FCC media rules, citing the importance of the cross-ownership cap. He said that while there had been emphasis on the 35% broadcast ownership cap, it would be “rank hypocrisy” to reject the FCC’s larger ownership cap without eliminating the cross-ownership rules, which he said were “just as onerous.” When asked whether he believed the Senate would veto the FCC, McCain said: “Oh yeah, I think it will pass. I don’t know it will pass, I haven’t done a whip count.”
AT&T told the FCC that BellSouth’s proposals to exempt ILECs’ broadband service from cost allocation rules and mandatory universal fund (USF) contributions were “frivolous” and should be “summarily rejected.” In a July 31 ex parte letter, AT&T told the Commission that cost allocation rules were “vital accounting safeguards and eliminating them or creating an arbitrary exemption for broadband services would only enhance the Bells’ already significant opportunities to harm consumers and competition through discrimination and cross-subsidization.” AT&T also argued that BellSouth basically was seeking deregulated status for broadband service except for cost allocation rules where it “paradoxically claims that such services should, for those purposes only, still be considered ‘regulated.'” AT&T said it didn’t support the idea of deregulating broadband services, but “if broadband services are to be deregulated, then the only nonarbitrary conclusion would be that broadband services must also be deemed ‘nonregulated’ under the Commission’s cost allocation rules.” AT&T said that under FCC rules, classifying a service as nonregulated triggered the cost allocation rules, which require ILECs to separate the costs of nonregulated services from regulated services. “Making this distinction between regulated and nonregulated services is the critical first step in the Commission’s accounting safeguards,” AT&T said. It also disagreed with BellSouth’s proposal to remove wireline DSL revenues from the USF contribution base to gain parity with cable broadband providers, which don’t contribute. Said AT&T: “BellSouth is simply mistaken in contending that it cannot be required to contribute to universal service based upon the interstate revenues from its wholesale transport offerings unless cable broadband providers also contribute to universal service.”
The Senate will vote on a “congressional veto” of all new FCC media ownership rules, possibly in the first week of Sept., and Sen. Dorgan (D-N.D.) was cautiously optimistic of the outcome in a news conference Tues. “I feel good about it, I believe we will prevail,” said Dorgan, who introduced S.J. Res.-17, a “Resolution of Disapproval” that would scrap all of the media ownership rule changes the FCC approved June 2.
The media ownership battle now moves to the Senate after the House approved Wed. a 35% cap on broadcast ownership, but rejected cross-ownership bans. In a 400-21 vote, the House approved the Commerce Justice State (CJS) appropriations bill (HR-2799) that included an amendment that would restore the broadcast ownership cap to 35% despite a potential Presidential veto.
Using such terms as illogical, bizarre and absurd, consumer advocates said the “diversity index” the FCC used to craft new cross-ownership rules was “fundamentally flawed” and would be a centerpiece in their challenge to the rules. The Consumer Federation of America (CFA) said in a report that the FCC, in using the diversity index (DI) to justify cross-ownership rules, created a contradictory system that didn’t reflect the proper balance of news and information provided by local outlets. “This index is so nonsensical that it finds the N.Y. Times to be a less meaningful source of news about New York than the Multicultural Radio Corp.” said Gene Kimmelman, of Consumers Union.
The long wait for release of the FCC Triennial UNE Review order was expected to cross the 5-month mark Sun. (July 20). Observers were speculating that the order might not be released before NARUC’s summer meeting starts July 27. NARUC, whose PUC members are expected to have a key role in determining UNE rules under the order, hopes to have the text in hand before its session starts. It’s planning to schedule working sessions at the meeting to help state regulators better understand their responsibilities under the order. In the latest report to members, NARUC said Fri. there still was a chance the text could be released Thurs. or Fri., just before the start of the meeting. The FCC reportedly completed the bulk of the order a month ago but the delay appears to have centered on completion of FCC Chmn. Powell’s separate statement and Comr. Martin’s review of it. Custom dictates that a dissenting statement can be reviewed by the majority. The hangup involves an area of the order where Powell is in the minority and Martin in the majority, sources said. USTA Pres. Walter McCormick said it was “beyond comprehension” that the telecom industry “has been left in regulatory limbo for 5 months waiting for the Triennial Review decision.” Rep. Forbes (R-Va.) told the House Wed. that the FCC’s continued delay in issuing its Triennial Review order was “unconscionable.” “What is the FCC waiting for?” he asked. Forbes said the order was needed to start “the FCC down the road to true parity of broadband regulation.” He said half of the state legislatures had completed their entire legislative year in less time than the FCC had taken on the order. “The FCC can’t seem to agree on the words that give life to the order they voted on in Feb,” Forbes said. “I missed the part in civics class where it is harder to write the words of a regulatory order that has been agreed to than it is to conduct the entire annual business of a state.” He called the delay “embarrassing.”
The 35% broadcast ownership cap took a step closer to the House floor Wed. when THE Appropriations Committee voted 40-25 to add the amendment to the Commerce Justice State (CJS) appropriations bill. The amendment came with warnings from Appropriations Chmn. Young (R-Fla.) that the White House wouldn’t support the provision, but a potential veto didn’t scare Republican supporters. Ranking Democrat Obey (Wis.), who introduced the amendment, said an appropriations amendment was warranted and needed in this situation since House Commerce Committee Chmn. Tauzin (R-La.) had said he wouldn’t move 35% ownership legislation (HR-2052) in his committee.