Commonwealth of Northern Mariana Islands filed request with FCC March 7 for expanded universal service option support for low- income consumers there. Marianas seek support similar to measures adopted in FCC Tribal Order for low-income subscribers living on tribal lands. In Tribal Order, agency adopted measures designed to promote increased subscribership levels in tribal communities, including enhanced Lifeline support, expanded Link Up support and additional criteria for eligibility for Lifeline and Link Up support. Comments are due at FCC by April 13, replies April 30.
Sen. Burns (R-Mont.) said Congress needed to address rules governing telco access to public lands to ease carrier deployment of communications infrastructure including fiber cable and wireless towers, he told USTA conference Thurs. USTA attendees asked him whether Congress planned to take up issue, which they said could facilitate broadband service deployment, particularly in western states such as Mont. Burns said roadblocks industry faced in getting swift approval for public rights-of-way weren’t limited to western states, pointing out that W.Va. Sen. Byrd (D) had expressed similar concern on difficulties faced by telcos in eastern states. “I think we're going to need legislation to address all public lands,” Burns said.
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%.
Land mobile radio services and 218-219 MHz service users face mandatory FCC electronic filing deadlines of March 20, April 25 and June 5. FCC Wireless Bureau said dates represented close of transition periods that end 6 months after date for each of 3 phases in which land mobile services have deployed to Commission’s universal licensing system. March 20 deadline is for first phase of land mobile deployment and April 25 for 2nd phase. Bureau said application also must be filed electronically by April 25 if both radio service codes were subject to order, but may be optional for radio services code.
Large carriers informed FCC and SEC of details of financial arrangements with designated entities in recent C-block re- auction, including $2.6 billion pledged by AT&T Wireless to Alaska Native Wireless (ANW). Cingular Wireless said it has planned $460 million in loans to designated entity Salmon PCS. FCC released public notice late Tues. (CD Feb 28 p5) on long forms filed by successful bidders in PCS auction that raised $17 billion. Relationships between major carriers and designated entities, which qualified to bid on licenses closed to smaller bidders in auction, have been subject of scrutiny by some smaller carriers.
Responding to request for information from FCC International Bureau, Deutsche Telekom (DT) and VoiceStream emphasized there’s “no substantial possibility” that Germany’s competitive or regulatory environment “could harm competition” in U.S. “There is nothing in the record to demonstrate that the merged company could engage in anticompetitive cross-subsidization or predation.” In connection with proposed merger of Germany’s DT, VoiceStream and Powertel, International Bureau Chief Donald Abelson sent list of 23 questions to DT and VoiceStream earlier this month. Questions included percentage of business and residential loops in Germany controlled by DT, how foreign holdings of DT were treated for regulatory purposes and whether govt. shareholders were bound to vote with majority of other owners. Bureau also asked about separate $5 billion investment that DT made in VoiceStream in advance of merger’s closing. Companies replied Germany doesn’t regulate DT’s foreign operations, including U.S. affiliates. They said carriers had several options for bypassing DT facilities when bringing traffic into Germany from European countries where there are landing stations for U.S.-Europe undersea cables: Carriers can route traffic to any point in Germany without using DT facilities. Variety of alternatives “makes clear that no bottleneck exists for international services in Germany,” companies said. Answers also addressed concerns raised by Sen. Hollings (D-S.C.) that $5 billion investment by DT amounted to 39% of VoiceStream’s capital stock. Hollings has contended DT’s current stake in VoiceStream should be assessed, based on Commission precedent, by comparing DT’s investment with VoiceStream’s total “paid-in capital.” Companies said: “This argument is simply wrong.” They said Hollings misinterpreted past decisions of FCC in determining amount of “alien beneficial ownership.” One of cases cited as precedent is FCC order granting Fox TV stations permanent waiver of 25% limit on alien ownership of stations based on ownership of Australia-based News Corp. Unlike transactions at stake in Fox and NextWave cases, companies told bureau “share ownership is the only accurate means to evaluate alien beneficial ownership of VoiceStream.” Paid-in capital analysis would “greatly overstate” actual amount of alien beneficial ownership, companies said.
FCC asked for comments by March 16 on Ariz. Corp. Commission (ACC) proposal to set service area for Smith Bagley mobile phone company that’s different from study areas of 3 rural telcos it overlaps. Changing service area definition can make it easier for wireless providers to gain designation as eligible telecom carriers (ETCs), which in turn makes them eligible for universal service support. ACC proposes to define Smith Bagley’s service area as that portion of its existing cellular contour that encompasses tribal lands in Ariz., which is area Smith Bagley plans to serve as local telco. FCC issued call for comments Thurs. in response to Smith Bagley petition for FCC’s consent (DA 01-409, CC Doc. 96-45).
Original C-block bidder Airadigm is awaiting answer to petition for reinstatement of its PCS licenses, which FCC cancelled after carrier missed payment after entering bankruptcy in July 1999. Petition still is pending before agency nearly one month from oral argument before U.S. Appeals Court, D.C., March 15 in litigation involving NextWave, bankrupt C-block bidder that also had its licenses cancelled for nonpayment. Airadigm has pointed out that only similarity between it and NextWave is that both are C-block bidders that entered Chapter 11 protection and missed installment payment for licenses. Because of disparities such as fact that Airadigm is offering service and NextWave isn’t, question is whether 2 carriers potentially could be treated differently by Commission. Proceeding raises complex web of legal issues for FCC, making outcome uncertain, industry observers said. At press time, item on Airadigm petition wasn’t yet circulating on 8th floor. Meanwhile, group of large carriers asked Commission to put off Airadigm decision longer, citing how circumstances had changed since NextWave litigation began.
NASA’s NEAR Shoemaker spacecraft successfully landed on Eros asteroid at 3:05 p.m. ET Mon. and continued to send signals despite scientists’ predictions that would be unlikely. Craft was not designed to land on asteroid and design of antennae and topography and orbit of asteroid had been expected to block any signal from craft.
FCC continues to work with frequency coordinators on recently implemented universal licensing system (ULS) under which coordinators have complained they haven’t been able to file applications electronically. Some land mobile radio service licensees have contended system implementation issues have caused delays for frequency coordinators and that more rigorous beta testing could have avoided problems. “Both groups might have to change their program a little bit to make this thing work,” one FCC official said. “We're trying to work with the frequency coordinators.” Assn. of Public-Safety Communications Officials (APCO) officials said no public certified frequency coordinator had been able to submit application electronically since ULS system went online last fall (CD Feb 6 p3). APCO also is concerned that large number of applications are returned to filers for simple errors. FCC official said agency had discussions throughout last year with frequency coordinators, including timing of phased-in approach for starting ULS for land mobile applications. Second phase of ULS began operating in Oct. for public certified frequency coordinators, followed by industrial and business frequency coordinators in Dec. When asked earlier in year if deployment targets gave coordinators enough time to modify their systems, FCC official said, “there wasn’t any resistance to the time frames that we established.” On testing issue, she said: “We were for testing but the coordinators weren’t ready to send us any files.” First phase of ULS deployment of land mobile licensees involved Nextel, so one class of licensees already was filing earlier in year without problems, official said. “Our goal is to have everything on data entered within 5 business days of receipt. Now we are working on 10 days,” she acknowledged. Many of frequency coordinators have been successful in testing in last few weeks as they approach deadline for making electronic filing within 6 months of ULS deployment date for particular group of licensees, official said. FCC has asked coordinators if they need extension of this 6-month date and hadn’t received word that more time was needed, she said. On applications returned for simple errors, for example, agency is trying to work with companies “to efficiently process these transactions during the transition period.” Applications returned as result of minor errors, such as missing zip codes, emerged during transition with other licensee groups and were worked out, official said. In regularly scheduled meetings with frequency coordinators, coordinating bodies have aired concerns and discussed with agency how to address problems, FCC official said.