TIA urged the Senate leadership to consider the spectrum reallocation trust fund legislation that has languished in the Senate. In a letter to Senate Majority Leader Frist (R- Tenn.) and Minority Leader Daschle (D-S.D.), TIA said the bill “is of critical importance to the future of the radio spectrum and the wireless communications industry as a whole because it will produce greater certainty in the market and accelerate the innovation and introduction of new services. The bill ensures that eligible federal entities, particularly the Defense Dept., operating in the spectrum bands identified for reallocation to private sector users are properly compensated for the costs associated with their relocation. The Senate Commerce Committee passed HR-1320, which also passed the House last year. However, Sen. Sununu (R-N.H.) added controversial language that benefited Northpoint Technologies. The bill lay fallow since its late-June approval by the Senate Committee. (CD June 27 p1) TIA officials said the Northpoint language must be removed, which shouldn’t be as much of a problem since the spectrum that Northpoint sought has already been auctioned. “The passage of this legislation is a must before the end of the 108th Congress,” TIA Pres. Matthew Flanigan said.
Apex is moving to marshal retail support for a final hearing April 15 before the International Trade Commission (ITC), which will decide whether to impose duties on TVs imported from China and Malaysia, Apex Sales Vp Gary Bennett said. Among the retailers Apex contacted are Best Buy, Circuit City, Sears and Wal-Mart, he said. Wal-Mart testified against imposing duties during a preliminary ITC hearing. “We're not asking them [retailers] to defend us and the Chinese,” Bennett said: “We're asking them just to defend their own import situation.” Best Buy is among a growing number of retailers to have established a buying office in China. The Commerce Dept. is scheduled to release the proposed duties April 12 and the ITC will vote whether to impose them on May 14. TV set manufacturer Five Rivers Electronic Innovations and labor unions from Sanyo and Toshiba plants filed a complaint with ITC last May seeking duties of 84% and 64% on TVs shipped to the U.S. from China and Malaysia, respectively. Chinese manufacturers named in the complaint include Hisense, Konka, Sichaun Changhong and Skyworth. In 2002, imports from China rose to 1.2 million units with a value of $240.6 million, up from 56,295 ($23.9 million) a year earlier.
Sen. Appropriations Chmn. Stevens (R-Alaska) appears supportive of the FCC’s current model for competitive entry into the telecom marketplace, as he and a few other influential senators are urging the Justice Dept. to appeal the U.S. Appeals Court, D.C., ruling that vacated parts of the FCC’s Triennial Review Order. Meanwhile, nearly 130 House members are writing directly to the President urging the Administration not to appeal the decision (CD March 16 p9). And sources said other letters may be coming in an effort by members and industry to influence the decision of Solicitor Gen. Theodore Olson, who has about 2 months to request a stay of the order and 3 months to decide whether to appeal.
MCI said it reached a settlement with Okla. Attorney Gen. Drew Edmondson, who agreed to drop criminal charges of securities fraud against the company. Edmondson last year (CD Aug 28 p1) filed felony charges against MCI/WorldCom and 6 former employees in what was believed to be the first criminal action against the company. MCI and others were charged in Okla. County Dist. Court with 15 counts of violating the Okla. Securities Act. However, the Okla. AG’s office said Fri. it would drop the charges on the condition that MCI would add 1,600 jobs over the next 10 years at its Tulsa facility -- one of the company’s largest regional hubs -- and assist in prosecuting its former executives. “While the settlement contains a potential financial component tied to the job creation provisions, MCI fully intends to satisfy its agreement with the Attorney General by adding jobs in Oklahoma,” said MCI Deputy Gen. Counsel Carol Petren. Edmondson said the disposition of the state’s case against the company would result in more than $100 million in positive economic impact. “Since WorldCom’s collapse, a new company has emerged from the rubble,” he said: “It was never our intention to put the company out of business, and MCI has taken significant steps to clean its own house.” Edmondson said Okla. pension funds with current MCI holdings would suffer if the company received a criminal conviction. A deferred prosecution agreement allows the state to recoup certain losses and protects the pension funds’ current holdings, he said. “The deferred prosecution of WorldCom will have a positive impact on the community in connection with the substantial employment MCI continues to provide to the Tulsa area,” the agreement said. Edmondson said the agreement was “in the best interests” of the state: “If MCI loses its licenses to operate in Oklahoma, its nationwide calling plans are invalid. If MCI can’t offer nationwide calling, they can’t compete in today’s communications marketplace, and the Oklahoma pension funds holding MCI bonds take another hit.” Under the agreement, MCI will create 160 new jobs each year for 10 years. The average annual wage of the jobs is set at $35,000, to a total of $56 million in new income in the 10th year. Over the 10 years, the company will have paid $308 million in new salaries. The Dept. of Commerce estimated the agreement would result in: (1) $12.3 million in net direct benefit to state revenue in 10 years. (2) $112 million in annual payroll due to direct and indirect job growth. (3) $2 million positive annual impact on city and county revenue.
The govt.’s role in promoting the next-generation Internet, IPv6, should be “primarily that of an intensely interest consumer of Internet products,” Qwest said in comments to the Commerce Dept., echoing most commenters, who believed the govt. shouldn’t mandate the transition from IPv4. Several said security improvements weren’t as important an attribute of IPv6 as previously billed; the transition was faster in Asia; and market demand would boost the U.S. transition.
NTIA, the U.S. Patent & Trademark Office and the Commerce Dept.’s Technology Administration plan a forum April 1 on wireless sensor technologies. The half-day forum will cover the future market for sensor technologies, including current and prospective uses by industry and govt. The forum will address public policy issues such as spectrum use, privacy and security and intellectual property. It will be 9 a.m.-1:15 p.m. at the Commerce Dept. auditorium, 1401 Constitution Ave. NW.
A full-time exec. dir. will be announced for the Alliance for Digital Progress (ADP) in the next couple weeks, becoming its first full-time employee, a spokeswoman for the Business Software Alliance (BSA) told us. The group was formed to oppose legislative proposals to force technology mandates as a way to protect digital content online. The group has been largely inactive in recent months, and Frederick McClure, who carried the ADP title of pres. is no longer formally affiliated with the group, but the spokeswoman said ADP “had a full agenda for 2004.”
CWA Exec. Vp Larry Cohen called for changes in policies to eliminate the digital divide in the U.S. and promote broadband. “We need to update our universal service policies to make sure that all Americans have access to and can afford high-speed, high-quality Internet service at home,” he told a broadband forum in Washington Fri. sponsored by the Alliance for Public Technology.
Newly anointed House Commerce Committee Chmn. Barton (R- Tex.) reiterated his support for the “Tauzin-Dingell” method of telecom deregulation, noting that he was a co-sponsor of the bill in the 107th Congress. Asked if Tauzin-Dingell was essentially dead since the FCC has enacted some of the bill’s provisions, Barton said the philosophy behind Tauzin-Dingell hasn’t died. Barton has said the Telecom Act of 1996 will need to be reformed in the upcoming 109th Congress, as has Senate Appropriations Chmn. Stevens (R-Alaska), who will likely become Senate Commerce Committee Chmn. next year. Barton said the U.S. was falling behind other countries -- Korea, Japan, Western Europe -- in broadband deployment, and the govt. should look for ways to accelerate the rollout of high-speed Internet access. However, Barton has named Rep. Pickering (R-Miss.), an opponent of the Tauzin-Dingell approach, to be the Committee vice-chmn. Pickering said when evaluating the Telecom Act, the Committee will take into account many factors, including VoIP, the universal service fund (USF) and spectrum reform. Pickering said the Committee should look to “maintain competition and choices” when reforming telecom law. Barton was careful not to commit to any changes in telecom policy, noting that the Committee hadn’t yet been through the hearing process that he said is needed to educate members on the state of the industry. Barton said the Committee will have hearings this year on the federal budget and will likely hear testimony from relevant Administration officials, including those from the Commerce Dept. Barton said the Committee will look for ways to streamline the budget of agencies over which the Committee has jurisdiction. The Committee will also continue its investigation into the E-Rate USF fund that provides funds to schools and libraries for telecom services, Investigations Subcommittee Chmn. Greenwood (R-Pa.) said. Barton didn’t say whether he would support the E-rate program, only saying it remains a “controversial” spending mechanism. House Telecom Subcommittee Chmn. Upton (R-Mich.) will remain in his post, and he said Thurs. that the Subcommittee would begin to “lay the framework” for telecom reform this year. He said the Subcommittee will hold a hearing on the Satellite Home Viewer Improvement Act (SHVIA) next week. There were few changes to the Committee structure from that of former Chmn. Tauzin (R- La.). Rep. Hall (R-Tex.), who switched from the Democratic party, will take Barton’s position as chmn. of the Energy Subcommittee. Rep. Shadegg (R-Ariz.) will be the Committee Whip and Rep. Shimkus (R-Ill.) will become the Committee Coalition Dir. Barton said most of the staff would remain in place, save the few who follow Tauzin when he leaves Congress. Barton announced C.H. “Bud” Albright would be the Committee Staff Dir. Albright comes to the Committee from Reliant Resources -- an energy company -- and once was the Committee’s Chief Oversight Counsel. Lawrence Neal will become Deputy Staff Dir. for Communications. Neal spent 20 years in the press office of former Sen. Phil Gramm (R-Tex.) and comes to the Committee from the Census Bureau. Andy Black will be the Deputy Staff Dir. for Policy. Black was on Barton’s Energy Subcommittee and also in the private sector for The Advocacy Group.
Marcellus Alexander, NAB exec. vp-TV, named pres. of the NAB Education Foundation… Patti Hart, ex-Excite@Home, named Chmn.-CEO of Pinnacle Systems… Connie Correll-Partoyan, senior advisor to Commerce Dept. Undersecy. Phil Bond, to join Preston Gates as govt. affairs counselor… Michael Pfau, partner at law firm Reicker, Clough, Pfau and Pyle, named to TMC Communications board… David Wilson,Ex-Triumph Communications, appointed CFO, Alaska Communications, replacing Kevin Hemenway, who moves to senior vp-corporate projects.