BOSTON -- Just as FCC completes restructuring process, former Commission official told Connectivity 2002 conference here that Congress needed to essentially rip up 1934 Act and create vertical regulatory model for Commission, replacing horizontal model based on regulating disparate services. Kevin Werbach, former FCC counsel for new technology policy, said Congress should start work now “writing the Telecom Act of 2010.” After his presentation, he said that while Chmn. Powell hadn’t been converted to his point of view, his paper on subject had been requested by several staffers at FCC, including some on 8th floor. More immediate pitches were made for traditional issues related to broadband connectivity such as structural separation, rights-of-way reform, open access.
HERSHEY, PA. -- Roy Stewart, chief of FCC Office of Bcst. License Policy, didn’t once mention EEO during his presentation here Mon. at Pa. Assn. of Bcstrs. (PAB) -- but that was subject of every question but one he received in spirited session. In its 3rd attempt to adopt employment rules for TV and cable that will withstand court scrutiny (2 early rules were ruled unconstitutional), he said Commission was trying to “strike a balance” to assure that all prospective employees would hear about industry job openings.
FCC launched rulemaking for what it said is further effort to “prevent undue delay” by TV stations in digital roll-out. Major part of proposal is system of “graduated sanctions” -- which could lead to revocation of digital license -- contemplating “an increasingly severe level of sanctions” every 6 months for stations that haven’t converted to digital transmissions, Commission said.
FCC will look at Telecom Act’s separate affiliate requirements for Bell companies’ long distance units in notice of proposed rulemaking (NPRM) on agenda for agency’s May 16 open meeting. Telecom Act’s Sec. 272 specifies that separate affiliate rule will sunset on per-state basis 3 years after Bell companies get Sec. 271 approval for each of those states unless Commission takes steps to extend requirement. FCC will consider opening NPRM that will ask whether it should sunset or extend requirement. First Bell eligible for sunset is Verizon’s N.Y. unit in Dec. Next one would be SBC’s Tex. unit in mid-2003. Also for consideration on agenda issued late Thurs.: (1) Report and order on service rules for 27 MHz of spectrum transferred from federal govt. Spectrum includes 216-220 MHz, 1390-1395 MHz, 1427-1429 MHz, 1429-1432 MHz, 1432-1435 MHz, 1670-1675 MHz and 2385-2390 MHz. Spectrum includes several small blocks transferred under Omnibus Budget Reconciliation Act of 1993 and Balanced Budget Act of 1997. New allocations were designed to permit innovative wireless technologies. (2) Second report and order on regulations for spread spectrum devices. FCC approved proposal last year with changes that would reduce amount of spectrum that must be used for frequency-hopping spread spectrum systems at 2.4 GHz. (3) Order on extension of Oct. 5 deadline for DTV construction by some network affiliates in top-30 markets. (4) Rulemaking on remedial steps for those that have failed to comply with DTV construction deadline. (5) In separate item, Commission will consider order to allow private cable operators to use frequencies in 12 GHz band of cable TV relay service (CARS).
FCC should withdraw its cable modem declaratory ruling and refrain from rulemaking in any of 4 broadband proceedings until it has learned enough to propose single set of coherent and internally consistent rules that parties can address, American Public Power Assn. (APPA) said in filing. Commission’s NPRM doesn’t contain “terms or substance” of any proposed rules, nor does it give interested parties sufficient information to determine kinds, scope or topics of specific rules that agency may adopt, APPA said. FCC merely sets forth some tentative conclusions and asks questions about consequences of those conclusions, it said, and process falls short of rulemaking requirements under Administrative Procedure Act. There are 450 public power systems that operate communications systems capable of providing broadband services, APPA said, and it called for incentives and “assurances of protection” from state barriers to entry and predatory practices by incumbents in order for them to fill service gaps caused by bankruptcies of CLECs and overbuilders. APPA said it was concerned that Commission’s actions in broadband rulemaking proceedings could exacerbate predatory pricing and anticompetitive practices of incumbents.
N.Y. PSC, pioneer in opening local phone networks to competition, warned FCC late last week that Commission’s broadband deregulation proposal could impede state agency’s often-heralded efforts. “New York’s progress in opening markets to competition could be impaired if the Commission prohibits unbundling for Internet access purposes,” PSC said in comments on FCC’s proposal to free Bell companies’ high- speed data services from interconnection and unbundling requirements. “We remain concerned that unless CLECs have access to ILECs’ facilities to provide high-speed Internet access, they will not be able to compete for local service,” PSC said. “The Commission’s tentative conclusion that the transmission component of retail wireline broadband Internet access, when provided over a carrier’s own transmission facilities, is an information service with a telecommunications component is incorrect.”
In teleconferences with reporters scheduled half-hour apart Thurs., CLEC coalition squared off against group of economists over why FCC’s proposed broadband deregulation was bad -- or good -- idea. Today (May 3) is deadline for comments on agency’s proposal to free Bell companies’ high- speed data services from regulatory requirements such as unbundling. Many parties are expected to file comments in what is considered one of most significant common carrier proceedings pending before FCC. Bell companies have complained that it wasn’t fair that cable companies could provide broadband cable modem services without similar regulations.
Citing U.S. Appeals Court, D.C., decision involving biennial review of broadcast ownership rules, CTIA petitioned FCC late Mon. to eliminate “unnecessary regulations” in policy areas such as local number portability (LNP) and Enhanced 911 (E911). Earlier this year, Commission appealed to D.C. Circuit, seeking rehearing of Fox ruling that overturned FCC’s cable-TV station cross-ownership ban (CD Feb 20 p1). Decision is seen as potentially changing burden of proof FCC must use in determining whether rules should be kept or eliminated under biennial reviews. FCC Chmn. Powell has raised concerns that biennial review standard could evolve under ruling from Commission’s having to prove why it eliminates regulation to also include why rules should be kept (CD Feb 21 p1). CTIA Pres. Tom Wheeler said Tues.: “The Fox decision gave clear direction to the FCC: Prove a regulation is vital and indispensable or get rid of it.” Wheeler said CTIA wanted to “help” FCC meet new standard by “jump-starting the 2002 biennial review process.”
Satellite Bcstg. & Communications Assn. (SBCA) is “disappointed and concerned” with FCC ruling that will allow multichannel video distribution and data services to share spectrum with satellite companies in 12.2-12.7 GHz band. Group said ruling didn’t “appear to adequately reflect results” of independent tests for interference. “This decision is particularly difficult to understand in light of the fact that there is ample spectrum available outside” DBS band, SBCA said. It said it would wait to see text of order before determining whether future DBS subscribers would be adequately protected.
FCC established pleading cycle for its rulemaking on regulatory classification of cable modem service. Deadline to file comments is June 17, replies July 16.