321 de minimis

Differing filings with SEC and FCC on same proposed service by WildBlue (WB) Communications are being challenged by rival Pegasus. In FCC filing, Pegasus accused company of “willful misrepresentation” to gain “milestone deferrals” and valuable Ka- band spectrum allocation. WB said in 2000 SEC filing that it wouldn’t build satellite equipped with intersatellite links (ISLs), but in later FCC filing received milestone waivers for ISLs based on premise that satellites would have them.

Broadcasters will begin considering setting up new technology development center to help manage technology transition as result of meeting Tues. at NAB, according to Greg Schmidt of LIN TV, acting co-pres. of MSTV. He said there was “strong consensus” at meeting of broadcast executives and officials of NAB and MSTV that “we need to put some resources in” to create entity that “over the next few years could end up being something quite substantial.” Schmidt and MSTV staff will begin drawing up tentative business plan for center for final decision later, he told us. “We're seeing a sea change in broadcasters’ relationship to technology,” Schmidt said. “There is a strong feeling that we need to be more aggressive in managing technology development.” One official said new technology center could function similarly to cable’s CableLabs. Broadcasters already have Advanced TV Technology Center, which originally was created to test DTV, and it could have role in process, official said. In addition, MSTV staffers will seek approval from financial contributors to recent VSB-COFDM to use some remaining funds to begin working on ways to improve DTV technology, Schmidt said. Meeting was intended to inform broadcasters about improvements in DTV transmission system, and no final decisions were made, we're told.

Opinions that emerged from last week’s ITU policy forum on IP telephony in Geneva (CD March 9 p3) largely addressed earlier concerns raised by U.S. and others that outcome not be too prescriptive, said Richard Beaird, acting deputy asst. Secy. of State for international communications and information policy. “We were willing to talk about studies; we weren’t willing to talk about conclusions to studies that haven’t taken place yet,” he told us. ITU forums don’t generate regulatory decisions but produce opinions for member countries to consider. Meeting that ended Fri. generated 4 opinions covering IP telephony, including Opinion D that called for “essential studies” by ITU to facilitate introduction of IP telephony, including interoperability considerations of implementing newer networks alongside circuit- switched infrastructure. Earlier versions of Opinion D, proposed by Syria with backing of countries such as Lebanon and Somalia, called on ITU to ensure there was way to measure traffic across IP telephony networks and backward compatibility between public switched telephone networks (PSTN) and IP-based systems. Version approved at forum Fri. eased off language that stirred concerns by U.S. and allies such as Canada and U.K. “At the end of the day, the opinions have a better tone from our point of view,” Beaird told us. “We have a basis for going forward on a number of studies and workshops. It’s important to bring the developing world along in this area.” Proposal for backward-compatibility in earlier versions of Opinion D had aroused particular concern. “Backward” was eliminated from final version to end confusion about exactly what would have been covered, said Helen Domenici, policy analyst with FCC International Bureau’s Telecom Div. One interpretation of original wording would have been that backward compatibility imposed same obligations on IP networks as typically were obligations of PSTN, she said. “It could have meant requiring a whole raft of regulations on the network,” Domenici said. Other opinions address general implications of IP telephony for telecom policies of ITU members, including regulatory frameworks of developing countries. Another opinion calls for actions to assist ITU members “in adapting to the changes in the telecommunication environment due to the emergence of IP telephony,” including case studies and cooperative actions. While participants in forum wrestled with how to define IP telephony, opinions ultimately steered clear of locking in definition. “This is a work in progress,” FCC International Bureau Chief Donald Abelson said, citing evolving nature of technology. “It’s difficult to lock in a precise definition.” Eric Lee, public policy dir. for Commercial Internet eXchange Assn., said resolutions generally marked compromises among participants “that while satisfying no one, didn’t do any damage.” In particular, day-long information session March 6, held before start of 3-day forum, helped bring international regulators up to speed on technology. “People came out more knowledgeable, even if they didn’t have specific policy questions answered,” he said.

Qwest lost agency-level protest at General Services Administration (GSA) on bridge contract for FTS 2001 awarded to Sprint and AT&T, incumbent bidders for original FTS 2000. GSA decision not to seek competitive bids for interim contract was “business judgment,” agency protest official Donald Suda said. “Qwest’s argument is really a difference with the agency’s judgment of what is ‘practicable,’ that is, where the agency drew the line,” Suda said. GSA had argued that Qwest couldn’t provide national long distance service under contract because it couldn’t provide interLATA services in states where former U S West didn’t yet have Sec. 271 authorization. Suda handed down decision late Mon. and it was made public Wed.

Utah legislature passed and sent to Gov. Michael Leavitt (R)bill (HB-149) that would limit authority of municipalities to own and operate cable and telecom facilities. Measure would bar local govts. that issue bonds to finance capital costs from paying origination, financing or other carrying costs from general funds or other enterprise funds. Bonds issued must be secured and paid for solely with municipal revenue generated from providing cable or telecom services, bill stipulates. It would require that municipality establish enterprise fund to account for its operation of cable or telecom service and would bar transferring any appropriation or other balance from fund to any other enterprise fund. “It [HB-149] sets up a number of roadblocks” for municipalities to enter telecom business, said Paul Venturella, telecom mgr. of Provo, Utah, which recently acquired cable system. AT&T spokeswoman said legislation would allow municipalities to compete in retail business only if they followed rigid requirements. She said it would help private operators by making municipalities pay same franchise fees and other taxes as incumbent cable systems must pay. “We are relieved that the bill levels the playing field” for corporate entities, she said. Meanwhile, Ore. legislature was considering measure (HB-2680) that would: (1) Require local govts. to set and charge prices or rates that were high enough to cover all direct and indirect costs incurred in providing telecom services. (2) Mandate annual full cost accounting. (3) Prohibit local govts. from paying direct or indirect costs incurred in providing telecom services if they weren’t reflected in accounting. (4) Require local govts. to provide 3-year cost projection before providing telecom service. NCTA spokesman said 13 states so far had enacted measures to level playing field for private cable operators: Cal., Conn., Fla., Ga.,Ill., Minn., Nev., N.H., Ohio, Okla., R.I., Tenn., Vt. Similar measure was in works in Wis., he said.

Draft General Accounting Office (GAO) report recommends that General Services Administration (GSA) open negotiations by March 30 with Sprint and WorldCom to reduce $1.5 billion minimum revenue guarantees of FTS 2001 contract. GSA, in draft report now circulating for comment, said suggested cut in minimum revenue was based on carriers’ “failure to meet management information and billing requirements within the time frames established in the contract.” Report spreads blame for contract lags among GSA’s “inability to rapidly add transition-critical services” to new agreements, slow pace at which federal agencies placed orders for services and failure of Sprint and WorldCom to provide some data GSA needed to “effectively manage this complex transaction.” Report also cited extent to which some LECS didn’t provide facilities on schedule to deliver FTS 2001 services.

Gilat Satellite Networks, taking $29.4 million in charges to write off investments and in-process R&D, reported $10.2 million 4th-quarter loss against $23 million profit year ago as revenue rose to $174.6 million from $108.9 million. In posting loss and conceding slowdown in VSAT business, Gilat said it would take another unspecified charge against earnings to cover restructuring that includes layoffs. As result, it revised earnings to $25 million ($1 per share) for 2001 on revenue of $575 million, down from analyst projections of $2.43 per share. However, Gilat said earnings would double in 2002 on $675 million revenue.

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.

Canadian Radio-TV & Telecom Commission (CRTC) said existing telemarketing rules now would apply to all telecom service providers uniformly across country and called for public input on whether rules should be toughened. CRTC said move addressed “patchwork application of rules across Canada” that differed from region to region and by type of service provider.

New Orbcomm owner hasn’t emerged despite earlier report that auction conducted by U.S. Bankruptcy Court in Wilmington, Del., was supposed to reveal winner by Fri. (CD Feb 27 p4). Auction opened at 10 a.m. March 2, with hearing to approve sale of assets originally scheduled for 5 p.m. Mon. in U.S. Dist. Court, Wilmington. “Things have happened but we haven’t set anything yet,” spokesman for Orbital said.