“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, analyst said after Commission turned down deal (CD Oct 11 p1). But industry officials were doubtful that realistically was possible. Companies weren’t speaking publicly about their plans to revise deal, EchoStar spokesman saying they would be revealed in meeting with Justice Dept. Oct. 28.
Commerce Dept. Asst. Secy. for Technology Policy Bruce Mehlman will join 3 outspoken panelists in yet another debate on digital content protection and distribution. This one is being hosted by Heritage Foundation and features CEA Pres. Gary Shapiro (who favors expansive fair use rights), House Judiciary Courts, Internet & Intellectual Property Subcommittee Minority Counsel Alec French (whose boss, Rep. Berman [D-Cal.], is author of bill permitting content industry to interfere with peer-to-peer networks) and Competitive Enterprise Institute Senior Fellow James DeLong (who recently hosted his own discussion titled “Invasion of the Idea Snatchers” in defending intellectual property rights). Oct. 23 noon panel will be moderated by Heritage fellow James Gattuso and will be streamed -- www.heritage.org.
Even as Congress began deliberations on resolution authorizing war with Iraq, congressional members and staff continued working behind scenes to clear significant pieces of copyright- and Internet-related legislation. Although some measures were near passage, with each bill obstacles remained -- not least of which was limited time left in this Congress. We're told Senate Majority Leader Daschle (D-S.D.) has told his colleagues he’s prepared to stay in session until new Dept. of Homeland Security is created, but many members of his party are itching to go home as soon as Iraq debate is concluded. Meanwhile, House might go home before Senate, leaving smaller window for legislation, particularly anything that would be reported from Senate then would need House action.
House Commerce Committee leaders are worried that international trade agreements designed to open foreign markets to U.S. telecom companies could constrain FCC from making domestic regulatory changes. In Commerce Trade Subcommittee hearing Wed. on telecom trade promotion, House Commerce Committee Chmn. Tauzin (R-La.) said in written statement that trade agreements shouldn’t lock in current FCC regulatory regime. “Market access commitments that apply to telecommunications services should be broad enough to enable the FCC to change the current rules,” he said. “The worst outcome I could imagine would involve the FCC finally getting around to changing the rules, but for the U.S. Trade Representative (USTR) to have already bound the U.S. to a regulatory framework that discourages facilities-based investment.”
Disney Exec. Vp Preston Padden said he wanted to form better relationships with telecom companies, particularly over content theft and licensing issues. At USTA convention in Boca Raton this week, he said it probably was first time Assn. ever had invited Disney official to its convention. Padden said that some in telecom industry had indicated interest in compulsory licenses but said “I think we have more in common than at loggerheads.” Content providers are faced “either with outright theft of our product or the government forcing licenses at prices set by the government,” he said, likening such govt.-set prices to telecom industry’s problems with govt.-mandated TELRIC prices: “I hope you'll see commonality with our position.” In panel discussion moderated by Chris Israel, deputy asst. secy. for technology policy at the Commerce Dept., Padden invited telcos to attend meeting in Disney World in Orlando later in fall to discuss those issues. Invitation appeared somewhat spur of moment so Padden told group he would contact USTA officials with more information. After session, several USTA members told Padden privately that he also ought to contact National Telecom Co-op Assn. when meeting details were set. Trent Boaldin, pres. of rural telecom company Epic Touch, said telcos were beginning to offer content as part of their broadband services and “it doesn’t take long to see it’s in our best interests to work together, telecom providers and content providers.” Goal, he said, is “to come up with a low- cost solution to [lessen] the incentive to steal.” Padden said it was time to make overtures to telecom companies that were becoming more involved in providing content. “The theme today is common ground,” he said: “We're not speaking enough together. We both want broadband deployed. We want direct connection to the consumer and not have Blockbuster take half of the rental fee.” Attorney James Halpert said telcos had stake in Internet content issues because under Digital Millennium Copyright Act they could be held liable if one of their employees knew of illegal act’s being conducted by customer and didn’t report it. Halpert urged telcos to work with providers to find “consensus solution” because “it’s better to keep the government out of it.” Halpert said “there should be business negotiations [because] government mandates is not the answer.”
BOCA RATON, Fla. -- Proposal to use “bill-&-keep” system for intercarrier compensation could cause significant problems for rural carriers unless universal service was increased to cover shortfall in revenue, panelists said Wed., last day of USTA’s annual convention here. Idea of moving to bill & keep to replace access charges and other carrier compensation systems has been under study at FCC for at least 2 years. Commission has been looking at having one compensation system replace myriad of carrier-to-carrier payment plans, including access charges and reciprocal compensation. Carriers, especially Bells, support moving to bill & keep as that one payment system. As originally proposed in White Paper by FCC staffers, bill & keep would divide network into 2 parts, with caller’s phone company billing from caller to central point and call recipient’s network charging for completion of call. System is considered simpler than those used now.
Trials for e-numbering (ENUM) services in Germany, U.K. and Austria unveiled their start-up concepts last week at workshops in Berlin, London and Vienna. With regulatory discussions and financial problems of telecom and Internet industries hampering quick rollout of new phone number domains, most of planned trials are behind schedule. “This could be a wakeup call,” said representative of Deutsche Telekom AG about a Tues. ENUM expert roundtable organized by telecom industry association BITKOM in Berlin. “We still have a long, long way to go to a full-grown ENUM market,” said Sabine Dolderer, board member of DENIC, registry for German country-code top-level domain TLD) .de, which houses new German ENUM-trial database.
Senate Commerce Committee hearing on broadband Tues. stressed importance of wireless technology as 3rd pathway for broadband deployment, with telecom experts painting grim picture of “depression” that had beset sector. While he and others acknowledged that time was running out to take action on broadband legislation this year, Chmn. Hollings (D-S.C.) stressed importance of moving away from “finger-pointing” in Congress. “We need to move beyond the intramurals up here over Tauzin-Dingell and parity,” Hollings said. “If the market demonstrates anything, it is that competition, not deregulation, drives the Bells to invest in their networks and comply with Section 271 to open their markets,” Hollings said. While panelists, which didn’t include telecom company officials, emphasized need to “jump-start” funding for sector, another common theme was how to structure unlicensed wireless rules and spectrum to allow Wi-Fi and other technologies to compete with DSL and cable.
Online joint ventures among major suppliers pose threat to competition, National Consumers League said at Washington forum Sept. 26. “The long-term risk could be fewer choices and higher prices for consumers,” Pres. Linda Golodner said. But NCL event co-sponsor took more nuanced stance toward such ventures, which include Orbitz and PressPlay. “Each venture must be analyzed on its own terms,” American Antitrust Institute Pres. Bert Foer said. “Some may be procompetitive and some anticompetitive. However, if they are intended to compete against e-commerce entrants into their industry to whom they supply products, it is imperative that they participate on a level playing field.” “Most-favored-nation” clauses, which may result in limiting competition from outsiders, have come under Justice Dept. scrutiny, Foer said. N.Y.U. law prof. Harry First recommended 5 major record labels be forced to divest joint-venture interests so they can develop independently.
U.S. delegates spent much of the first week of International Telecommunication Union (ITU) Plenipotentiary (Plenipot) in Marrakesh engaging other countries on telecom and Internet issues, said David Gross, U.S. State Dept. coordinator for international communications & information policy. Gross held bilateral meetings with ministers from 10 countries -- Brazil, Kuwait, Cameroon, China, Egypt, Israel, Mali, Mexico, South Africa, and Tunisia -- and has more scheduled, he said in a news briefing Thurs. from the Plenipot.