Senate Commerce Committee will hold confirmation hearing May 16 on Presidential nominations to Commerce Dept. and FTC., 9:30 a.m., Rm. 253, Russell Bldg., and confirmation hearing on FCC nominees, May 17, 9:30 a.m., Rm. 342, Russell Bldg.
Angered by U.S. agencies’ refusal to meet them this week, members of European Parliament (EP) committee investigating existence of global communications interception system said Thurs. they were cutting their trip short and returning home. EP Temporary Committee on ECHELON Interception System, which allegedly can intercept Internet, telephone and fax communications, has been looking into impact and structure of spy system and its function within association of English-speaking nations called UKUSA, Chmn. Carlos Coelho said at news conference at EP hq in Washington. One month ago, he said, committee’s chief of staff began scheduling meetings with congressional and Administration officials to discuss ECHELON. However, Coelho said, “we are concerned and dismayed that scheduled meetings with the State Department, with the Advocacy Center of the Department of Commerce [DoC] were cancelled at the last minute without a satisfactory explanation.”
Efforts to streamline process for Commerce Dept.-controlled satellite export licenses have hit snags, Commerce members said at Bureau of Export Administration (BXA) Advisory Committee meeting in Washington. Definition of “specially designed” equipment on export control list isn’t likely this year, said Tanya Mottley, BXA’s dir.-Strategic Trade Div. in Office of Strategic Trade & Foreign Policy Controls. “We have not had much success” trying to come up with acceptable definition for all countries in export control agreement, she said. “The more that we discuss it, the less likely we are” to reach agreement on definition this year, Mottley said. Committee didn’t discuss Berman-Rohrabacher bill that would return satellite export licensing controls to Commerce Dept. from State Dept. that Satellite Industry Assn. and Space Foundation endorsed (CD May 8 p7) or proposals to streamline export control process for U.S. allies. William Root, export control consultant, said export controls were “vestige of the Cold War.”
Satellite Industry Assn. (SIA) and Space Foundation announced support of bill by Reps. Berman (D-Cal.) and Rohrabacher (R-Cal.) that would return satellite export licensing authority to Commerce Dept. from State Dept (CD May 7 p3). Space Foundation Pres. Elliot Pulham said bill maintained “necessary and appropriate national security safeguards for sensitive technology” while addressing industry concerns over declining market share.
Security protections built into satellite export licensing reform bill would “ensure that sensitive technologies don’t end up in the hands of potential adversaries,” said Rep. Berman (D-Cal.), who on May 3 introduced bill with Rep. Rohrabacher (R-Cal.). Bill, which has undergone several revisions in recent months to address national security concerns of congressional hawks, would return satellite licensing jurisdiction to Commerce Dept. from State Dept. It also would create licensing referral process between Commerce Secy., secretaries of Defense and State, and dir. of CIA.
Intelsat and Eutelsat asked U.S. govt. to allow launch of satellites aboard Chinese Long March rockets early next year. However, both companies are preparing alternative plans in expectation that U.S. will deny permission. Both satellites were built by European companies but have American-supplied components. Meanwhile, industry sources and Bush Administration officials are offering different takes on issue. Satellite industry plans to monitor situation closely because of concerns about satellite component market because of tighter export controls. This marks first time U.S. has faced issue of dealing with U.S. components aboard non-U.S. satellite since export licensing was moved to State Dept. from Commerce Dept. 2 years ago.
Reps. Conyers (D-Mich.) and Cannon (R-Utah) introduced bills that under certain circumstances would prevent Bell companies from offering in-region interLATA services, regardless of whether companies satisfied market-opening provisions of Sec. 271 of Telecom Act. Legislation also would ensure that Telecom Act didn’t supersede antitrust provisions of Clayton Act, measure that supporters contended would help prevent “remonopolization” of Bell companies. Cannon said bills also would overturn Goldwasser v. Ameritech case (CD April 3 p5), in which 7th U.S. Appeals Court, Chicago, ruled that Telecom Act took precedence over antitrust law in telecom-specific matters.
Multi-agency Committee on Foreign Investment in U.S. (CFIUS) finalized its review of VoiceStream, Deutsche Telekom and Powertel merger, allowing companies to clear last remaining regulatory hurdle before deal closes. VoiceStream said CFIUS ended its review with decision to take no further action. Panel includes departments of Defense, State, Commerce and Treasury. VoiceStream reiterated that it expected merger to close May 31. FCC unanimously gave green light to transaction last week with no major merger conditions. Successful CFIUS review had been expected after companies reached agreement with FBI and Dept. of Justice earlier this year on national security issues. That auxiliary deal was incorporated into FCC approval of transaction. CFIUS itself was created under Exon-Florio amendment to 1950 Defense Production Act and its investigation typically can last up to 45 days.
Spectrum allocation, regulations on space imaging and expediting process for satellite export controls are 3 main issues on tap for Aerospace Industries Assn. (AIA), Bruce Mahome, AIA dir.-space policy, said Mon. after news briefing in Washington on declining R&D federal budget for aerospace research. AIA has been working “to reassure [FCC International Bureau] that it should continue to back the industry,” said David Logsdon, AIA mgr.-space operations, and “put money into [R&D] efforts.” “Some people in the FCC are nervous the satellite industry can deliver workable systems after problems with Iridium and Globalstar” and satellite phones, he said.
FCC spelled out for first time at Commission level, in order on VoiceStream-Deutsche Telekom (DT) merger released Fri., relationship between Communications Act provision that bars foreign govt. ownership and section that allow indirect govt. investment. In granting license transfers in Powertel- VoiceStream-DT merger, order stipulated that indirect ownership by foreign govt. should be addressed only under Sec. 310(b)(4) of Act, not Sec. 310(a), which bars direct govt. ownership. Sec. 310(b) allows for foreign govt. to hold greater than 25% stake in corporate license “unless the Commission finds that the public interest will be served by refusal or revocation of the license,” order said. While text of final order contained no surprises, language has been closely watched for road map that it will provide for similar deals in future.