Facilities-based entry is only way to develop long-term competition in telecom industry, FCC Chmn. Powell said Tues. in sweeping announcement outlining his policy objectives for coming years. He said Commission in past had been so focused on introducing competition in telecom industry that it didn’t give enough thought to what type of competition worked. There was “bias toward competitive entry at any cost” that resulted in encouraging entry platforms that “didn’t have staying power,” he told reporters.
Notable CROSS rulings
Office of FCC Comr. Abernathy will begin returning ex parte letters that aren’t detailed enough to meet Commission requirements, she told reporters at breakfast Thurs. Lobbyists and others who don’t offer level of detail required by FCC guidelines will be asked to resubmit their letters. “We have rules in place that say when you come in and file an ex parte it should delineate exactly what you're saying and what issues you are going into,” Abernathy said in wide-ranging Q&A session: “That has not been followed in many instances.” In a recent speech to FCBA, Abernathy also had cited what she saw as need for more detailed ex parte filings. “If you look through the ex partes that are filed with this office, you should have a clear understanding of the issues in discussion and who’s been in and then you can decide which ones you do respond to,” she said Thurs. She said she had discussed the process her office was implementing along with other commissioners, whom she described as very supportive. “All it really takes is one or two offices ensuring that the information is there,” she said.
Asked what regulators could do better, industry players, analysts and others agreed on one thing at pulver.com conference Tues.: They need better understanding of how telecom industry works. Panelists, some of them offering lessons learned from failed CLEC ventures, said FCC and state regulators worked in terms of years while CLECs could change business plans in matter of months. They said regulatory uncertainty and regulatory barriers could slow rollout of services to consumers -- for example, one municipal govt. could stop entire regionwide network from beginning service.
Spokesman for Mabuhaysat (MPSC) of Philippines said Asian Open Skies Initiative (CD Oct 28 p2), proposed by Global VSAT Forum (GVF), would “stunt the growth and development of the small guys” and only serve “big boys” such as “Intelsat, PanAmSat and GE Americom": “If Open Skies policies were to be initiated in the Philippines, or even regionwide, this would put MPSC at a disadvantage against other regional satellite operators who are more developed and have more satellites to provide services… We cannot stand by a policy that attempts to promote such broad- ranging effects at this stage in our commercial development.” GVF said Open Skies Policies promoted deregulation of rules aimed at protecting local satellite operators but often prevented them from fully utilizing regional beams providing cross-border service to multinational companies. Spokesman said MPSC was small, new satellite company and still needed assistance from regulators while it developed, and even those regulations were “ineffective.” Protectionist policies in Philippines for Filipino company first right of refusal have been “watered down,” spokesman said, and companies use quotations from Mabuhaysat to let next satellite company bid on it. Company said it would be “more willing” to discuss creation of regional regulator.
Progress is being made in Asia to promote deregulation of rules aimed at protecting local satellite operators but often preventing them from fully utilizing regional beams providing cross-border service to multinational corporations. London-based Global VSAT Forum (GVF) Secy.-Gen. David Hartshorn said he would give presentation to Asia Pacific Telecommunity (APT) week of Oct. 16, including regulators from each country in Asia Pacific Region. Thailand conference will emphasize “urgent need” for endorsement of Open Skies Initiative and implementation of regulations that facilitate provision of both domestic and international VSAT-based applications, Hartshorn said. GVF first sought consensus of operator community, then approached individual regulators, and for first time will meet regulators at regional level to discuss endorsement during conference in midmonth.
Some cable networks have been excluded from simulcast tribute to victims and heroes of terrorist attacks on America tonight (Fri.). Among those not showing 2-hour telethon, but who would have if permitted, are American Movie Classics, Bravo, Home & Garden TV (HGTV), Independent Film Channel, WE Women’s Entertainment, BBC America, Animal Planet, Travel Channel, and Discovery Health Channel. Christine Levesque, spokeswoman for Rainbow Media, which has major holdings in AMC, Bravo and others, said cable executives were disappointed at decision by consortium of Big 4 networks, ABC, CBS, NBC and Fox, which decided to cut out cable programmers that didn’t have equipment for dual feeds. Program, titled America: A Tribute to Heroes, was brainchild of 4 networks, so they are setting rules on program. “This kind of goes against the grain of unity,” cable official said. Show is intended to raise money for victims and rescuers of Sept. 11 terrorist attacks in N.Y. and Washington. Among celebrities participating are actors Tom Hanks, Tom Cruise and Julia Roberts, as well as musicians Bruce Springsteen and Paul Simon.
FCC began review of 1975 rule barring cross-ownership of broadcast station and daily newspaper in same market. In rulemaking voted Thurs., Commission asked series of wide-ranging questions that noted changes in number and kinds of media outlets established in last 30-plus years, including Internet. Original rule was designed to ensure diversity of voices in market. Notice says there are some 40 newspaper-broadcast combinations that have been grandfathered in, and FCC has granted 4 permanent waivers of rule. Commission asked parties to provide data on how public interest was harmed or benefited from such combinations. Proceeding comes as result of June 2000 biennial review on broadcast ownership. Sec. 202 of Telecom Act of 1996 directs FCC to revisit broadcast ownership every 2 years.
Cable industry analysts said they doubt reported AOL-Time Warner (AOL-TW) bid for AT&T Broadband could pass regulatory muster, but one observer said govt. disarray over ownership caps could provide “a window of opportunity” for megadeal. Prospect of such corporate marriage was raised by Liberty Media Chmn. John Malone in discussions with analysts, many of whom said any alliance between AT&T Broadband, largest cable operator in nation with 15.3 million subscribers, and TW Cable, second largest cable operator with 12.8 million, would raise serious regulatory questions, even with courts openly criticizing FCC’s cable cross- ownership cap and new FCC Chmn Powell’s stated reluctance to impose such limits. AOL declined comment. AT&T officials said they were exploring their restructuring options and were in talks with “more than one company” but declined to identify any.
We were hard-pressed to find anybody in standing-room-only audience at U.S. Appeals Court, D.C., oral argument Fri. on FCC’s 35% TV station ownership cap that thought 3-judge panel would leave rules in place just as they were drafted. Following argument, Legg Mason analyst Blair Levin predicted “the rules are headed for an exit.” Levin, FCC chief of staff under Chmn. Reed Hundt, expressed opinion of most other observers (most of them lawyers): “The court was focused on how to send it back to the FCC rather than whether to send it back.”
At time when some in GPS, aviation and wireless community are voicing concerns to NTIA and FCC about potential of ultra-wideband (UWB) technology to cause interference, dozens of UWB trials and demonstrations are under way at federal agencies. Several industry observers said that sets up tough policy dynamic for NTIA between vocal criticism by GPS and aviation community and quieter interest of govt. agencies already using technology, which works by sending pulses at very low power levels in very short time periods over wide swath of spectrum.