Commerce Dept.’s Bureau of Industry & Security (BIS) vowed to crack down on violators of U.S. antiboycott regulations, following last week’s pledge by Arab League’s Boycott Office to reactivate its ban on trade with Israel. Commerce Undersecy. for Industry & Security Kenneth Juster issued reminder Mon. that U.S. businesses and citizens were prohibited from participating in unsanctioned govt. boycotts. He said BIS, formerly known as Bureau of Export Administration, had long history of enforcing antiboycott rules and had levied tens of millions of dollars in civil penalties on and denied export privileges to violators.
Commerce Dept.’s Bureau of Industry & Security (BIS) said Compaq had agreed to settle charges it illegally exported computers and related components to China and “various destinations in Asia.” Compaq will pay $39,000 in civil penalties in connection with its Digital Equipment Corp. affiliate and 2 overseas subsidiaries, which exported or re- exported equipment without required authorization from BIS, Commerce unit said.
Death Fri. of Sen. Wellstone (D-Minn.) in airplane crash saddened both Democrats and Republicans in Senate, with many colleagues from both parties issuing statements saying he was good man and would be missed. Wellstone, 58, died in twin- engine plane crash 175 miles north of Minneapolis. All 8 persons aboard died, including Wellstone’s wife Sheila, daughter Marcia, 3 campaign workers, 2 pilots. Wellstone wasn’t on either Senate Commerce or Judiciary Committee, but he had demonstrated interest in broadband. In both 106th and 107th Congresses, Wellstone was primary co-sponsor of legislation to boost rural broadband. In 107th Congress, he was original co-sponsor of S-966, introduced by Sen. Dorgan (D-N.D.) and co-sponsored by Sens. Carnahan (D-Mo.), Conrad (D-N.D.), Daschle (D-S.D.), Thomas (D-Wyo.), Harkin (D-Ia.), Hollings (D-S.C.), Johnson (D-S.D.) and Murray (D-Wash.). Bill would have had NTIA direct Rural Utilities Service under Dept. of Agriculture to make up to $3 billion in loans to rural carriers to support broadband buildout. Wellstone also was known as privacy advocate and made several efforts during debate on the USA Patriot Act to amend bill to ensure privacy. His death 11 days before Senate election in Minn. created some confusion politically. However, Minn. state Democrats cited state law allowing a political party to replace candidate on ballot who died, and they said they were confident they would be allowed to replace Wellstone on ballot. Left unclear was whether Wellstone’s campaign funds would be available to that candidate; as of June 30, Wellstone had $2.57 million on hand, according to Federal Election Commission. Wellstone was considered to be vulnerable in Nov. election. Polls often showed him with slight lead over Republican Norm Coleman, former mayor of St. Paul, but those leads sometimes fell within the poll’s margin of error.
While Internet and telecom issues aren’t grabbing headlines in upcoming midterm elections Nov. 5, some influential members face significant challenges. With most Internet and telecom issues filtering through Commerce Committee, industry observers tend to focus on those races. Broadcast and Internet industry also follow Judiciary Committee because of its focus on intellectual property issues. Most members who focus on those issues are regarded as safe in elections, as the most noteworthy challenge to leadership in those committees was resolved when House Commerce Committee ranking Democrat Dingell (Mich.) defeated 4-term Rep. Rivers (D-Mich.) in primary of newly redrawn 15th Dist. (CD Aug 8 p7). Yet some members of both of those committees do face challenges that also could affect makeup of both chambers, either of which could change party control after election.
Measure that would allow copyright owners to use self- help to stop unlawful peer-to-peer (P2P) file sharing is likely to undergo extensive revisions before being refloated in next Congress, House staffer said Wed. HR-5211, introduced by House Judiciary Subcommittee on Courts, Internet & Intellectual Property ranking Democrat Berman (Cal.), would give content owners immunity from liability under antihacking laws for interfering with transmission of copyrighted material over P2P networks. Measure has generated more than its share of controversy, Subcommittee Minority Counsel Alec French told Heritage Foundation panel discussion on digital copyright. However, he said, despite complaints to contrary, bill envisions only very limited “safe harbor” protection. Any content owner who goes beyond thwarting illegal file transfer -- such as interfering with e-mail or somehow damaging computer -- would face liability, he said.
Minn. PUC found Qwest guilty of knowingly and intentionally violating federal and state laws by failing to file certain local agreements it made with CLECs, and will consider penalties next month. Agency agreed with last month’s findings by administrative law judge that Qwest knew what it was doing when it didn’t file 25 pacts with CLECs that implemented or modified interconnection agreements. ALJ said agreements in question clearly should have been filed with PUC. Ruling came on complaint by Minn. Dept. of Commerce in Feb., alleging Qwest had made secret preferential agreements to buy off CLEC opposition to its long distance entry and other regulatory initiatives. PUC asked for briefs from parties on potential penalties by Nov. 8 and replies by Nov. 15, with oral hearing Nov. 19. Dept. of Commerce has called for $50 million fine and structural separation of Qwest into independent retail and wholesale business units. Commerce suggested PUC might consider tying penalties to Qwest long distance entry. In PUC meeting, Chmn. Gregory Scott indicated deep disgust with what he called Qwest’s deliberate violations of law, saying its fitness to hold state certificate could be called into question. Qwest said it was disappointed with PUC’s ruling. It said it had adopted internal controls in spring to ensure all agreements were filed for PUC review and approval, and would propose creation of formal monitoring mechanism under PUC auspices to ensure compliance. Qwest said structural separation or revoking its state certificate would be “extraordinary and unwarranted” punishment. AT&T, which has brought unfiled agreement issue up in other Qwest states, applauded PUC decision as “affirming its commitment to the state’s consumers and to honest, forthright phone competition.” Minn. action follows on heels of decision last week by Colo. PUC to open formal investigation on unfiled Qwest-CLEC agreements. That proceeding is being conducted separately from Qwest’s long distance entry, which PUC supports.
Senate Commerce Committee Chmn. Hollings (D-S.C.) remains interested in moving legislation that would consider subsidies to aid broadband rollout, but time ran out this session to float bill on which everyone could agree, said Kevin Kayes, panel’s Democratic staff dir. Kayes spoke Mon. on regulatory panel at Yankee Group Telecom Industry Forum in D.C. “It’s not such a far-fetched idea,” he said of subsidization possibilities. “It shouldn’t be dismissed out of hand.” While Senate drafters went through 4-5 versions of bill that would include subsidies, he told reporters after panel that in discussions with equipment-makers, incumbents and competitors: “Nobody was really ready to subsidize. There was sort of a feeling that this was interesting but nobody was really ready to do this.”
MARRAKESH, Morocco -- Although they insist telecom issues are technical, not political, Israel and the Palestinian Authority (PA) were unable to avoid politics in negotiations on a resolution calling on ITU to continue helping latter rebuild telecom infrastructure. Both view adoption of resolution as one of key actions taken at Plenipotentiary (Plenipot) Conference here. Not surprisingly, however, each side has different take on decision’s significance. While resolution ultimately won overwhelming support from ITU member states, final version was arrived at only after intense negotiations led by Plenipot Pres. Nasr Hajji, secy. of state to Prime Minister in charge of posts & telecom & information technologies, U.S. and other countries. Fact resolution was adopted without need for vote was important, source said, because issue had come close to derailing other ITU meetings.
MARRAKESH, Morocco -- Voluntary monetary contributions are down so dramatically that ITU’s proposed financial plan for next 4 years -- developed in long sessions by administration committee -- may have to be rethought, Secy.- Gen. Yoshio Utsumi said late Tues. afternoon at Plenipotentiary (Plenipot) Conference here. Although deadline for member states to declare their contributory units still was 15 months away, 10 countries already had announced cutbacks, prompting Itsumi to say that if financial plan was serious one, “I cannot implement” it. Last week delegates agreed on upper limit of 315,000 Swiss francs (CHF) for next 2 years, and 330,000 CHF for following 2 years. Exact number of contributions wasn’t known at our deadline.
“Ballgame” for EchoStar takeover of DirecTV “basically comes down to revising the deal in such a way that it’s acceptable” to FCC and to parties, one analyst said after Commission turned down deal (CED Oct 11 p1). But industry officials were doubtful that realistically was possible. Companies weren’t speaking publicly about plans, EchoStar spokesman saying they would be revealed in meeting with Justice Dept. Oct. 28.