NEW REGULATIONS MAY NOT BE ANSWER FOR CABLE INTERNET, MARTIN SAYS

FCC Comr. Martin said Tues. he was wary of instituting new regulations on Internet but indicated willingness to lift rules to achieve regulatory parity between cable and other kinds of companies that provided Internet or information services. He told reporters Commission should act soon on Notice of Inquiry pending more than year on how to define Internet delivered over cable. Question whether it’s telecom service, cable service, information service or some other kind of service has regulatory implications no matter which way it is decided, he said. Bankruptcy judge allowed Excite@Home to turn off its Internet network, leaving thousands of AT&T Broadband customers without service (CD Dec 4 p1, Dec 3 p4). Because Internet provided via cable has yet to be defined, FCC has no regulatory role now, raising criticisms from consumer advocates. Internet service provided by telcos over phone lines is regulated, which angers telco executives. Martin pointed to DSL provider Rhythms, which went out of business earlier this year and had to ask FCC for permission to discontinue service. In such case, Commission could provide transition period for consumers.

Martin reminded reporters that FCC Chmn. Powell last week indicated that Notice of Proposed Rulemaking (NPRM) might be necessary to address what broadband was and to try to “harmonize” regulations across platforms (CD Dec 3 p1). He said he was “certainly hesitant and get(s) nervous” when people start talking about regulating Internet, but he also said regulatory parity was important and Commission should strive for that “where there is sufficient competition, particularly by an unregulated provider.” Asked whether that meant freeing DSL providers of regulations, Martin said, “generally, yes,” but said he would have to see full details of proposal before determining whether he could vote in favor of it. While he said he would be leery of instituting any new regulatory regimes for broadband service or broadband information services, he also said idea “has some potential,” though again he said he would have to see details to make final determination.

As reported (CD Dec 3 p9), FCC is likely to take up 3 key telephony issues at agenda meeting Dec. 12 -- triennial review of unbundled network elements (UNEs), dominant- nondominant regulatory scheme and numbering efficiency issues, Martin said. It’s good that triennial UNE review is coming quickly on heels of UNE performance measurement item because 2 are closely linked, he said. Performance measurement proposal looks at provisioning issues while review will consider broader issues of what UNEs should be required, he said: “They should go hand in hand.” On numbering issues, Martin said FCC should make sure state regulators are “more integrated into the numbering process.” While FCC has statutory authority over number conservation issues, “the states frequently are on the front lines” in implementing numbering relief and “bear the brunt of consumer” complaints when area codes are changed, he said. FCC should try to make guidelines flexible enough to encourage individualistic state efforts at number conservation, he said.

This is “interesting time at the Commission” with so many notices of proposed rulemakings being teed up at the end of the year, promising next year will be busy one, he said. Also expected soon is Commission action on EEO rules that were overturned by U.S. Appeals Court, D.C., as well as action on Northpoint and ultra-wideband (UWB) issues, he said. EEO rules could be ready as soon as Dec. 12 meeting, although that’s not certain yet, he said. Martin said it would “give me pause,” if Northpoint proposal placed any burdens on DBS consumers to avoid interference, such as “having service technicians coming to their homes to adjust their antennas.” He said he doubted if FCC would complete action on Northpoint or UWB before end of year but they are high on priority list, he said.

Asked what lessons FCC learned from NextWave controversy, Martin said “the lesson I've learned is the Commission should be hesitant to be in the auction and the financial end at the same time.”