Industry representatives exhorted House Commerce Oversight Subcommittee Tues. to strengthen proposed exemptions from Freedom of Information Act (FOIA) for communications network owners that share threat data with govt. Several telecom and Internet industry panelists, including BellSouth Chief Technology Officer William Smith, urged panel to support President Bush’s plan (HR-5005) to create cabinet-level Dept. of Homeland Security (DHS), including establishing limited FOIA exemption for companies that voluntarily share infrastructure vulnerability data with authorities. In fact, panelists said plan should be strengthened to include antitrust protection for data-sharing as well.
Congress returns from week-long recess today (Mon.), immediately focusing on WorldCom scandal. House Financial Services Committee will hear former WorldCom CEO Bernard Ebbers and current CEO John Sidgmore. Hearing, titled “Wrong Numbers: The Accounting Problems at WorldCom,” 1 p.m. , Rm. 2128, Rayburn Bldg., also will feature: (1) Scott Sullivan, former CFO who was fired after scandal broke. (2) David Myers, former senior vp-controller, who resigned under similar circumstances. (3) Melvin Dick, former Arthur Andersen auditor. (4) Jack Grubman, Salomon Smith Barney telecom analyst. (5) Bert Roberts, WorldCom board chmn.
Commerce Dept.’s Technology Administration (TA) is holding its 3rd workshop on digital rights management issues, July 17, 1- 4 p.m. at Commerce Dept. Workshop will examine technical standards that enable digital distribution of content, their strengths and weaknesses and current and imminent technological solutions to protect online content for music, movies and games, TA said. Topics to be addressed include: (1) “The effectiveness of efforts to pursue technical standards or solutions that are designed to provide a more predictable and secure environment for digital distribution of copyright material.” (2) “What a future framework for success might entail.” (3) Current consumer attitudes toward online entertainment. TA is collecting comments on subjects before workshop, with deadline of July 11, via its Web site, www.ta.doc/gov.
Following civil fraud charges filed by SEC last week, Bush Administration said Mon. that General Services Administration (GSA) now was assessing ability of WorldCom to sign contracts with federal govt. in future. Federal acquisition regulations, which govern contracting with govt. agencies, stipulate general standards of conduct for contractors, including “satisfactory record of integrity and business ethics,” said spokeswoman for Office of Management & Budget. Due to SEC civil complaint and allegations involving WorldCom’s financial practices, GSA will examine company’s qualifications to sign future contracts with U.S., she said. One of largest contracts for which WorldCom is in running is $2 billion FAA Telecommunications Infrastructure contract. One potential outcome of govt. inquiry could be company’s suspension from conducting new business with federal agencies. GSA took that step in March when it suspended Enron from doing new business with govt. for at least 12 months based on finding that energy giant had engaged in misconduct and internal control irregularities.
WorldCom’s financial scandal could have repercussions on entire communications industry and how it’s regulated, said Washington policymakers, analysts and others who follow sector. FCC Comr. Copps said scandal “should give us some pause at the Commission before we rely fully on [corporate] data” when reviewing applications for mergers and other financial changes. It might be better for FCC to do its own analysis, he said. One industry lobbyist warned that companies would have tougher time getting deregulatory action on Hill, for example broadband relief sought by Bell companies through measures such as Tauzin-Dingell, because Congress was expected to become much tougher on corporations in general. Randolph May, senior fellow at Progress & Freedom Foundation, said he had hoped WorldCom’s problems wouldn’t lead to backlash against deregulation because bankruptcy was “about accounting practices and human frailties, not regulatory policy.”
National Research Council report on technology use to fight terrorism includes recommendation for priority wireless access to emergency responders during crisis. Report, released Tues., said interoperability among public safety officers should be priority research focus. “Existing interoperability solutions are ad hoc and do not scale well,” report said. Other recommendations include: (1) Learn how to transition gracefully and with minimal disruption from a unit-specific communication system to systemwide structure. (2) Define new communication protocols and develop generic technology to facilitate interconnection and interoperation of diverse information sources. (3) Develop approaches for communication systems to handle surge capacity and function in a saturated state. (4) Develop methods to provide more capacity for emergency communication and coordination. (5) Understand special security needs of rapidly deployed wireless networks.
Interoperability of communications and computer equipment that would be used by proposed Dept. of Homeland Security and by state and local first responders is one of top goals of White House plan, Office of Homeland Security Dir. Tom Ridge said Thurs. He appeared in separate hearings before Senate Governmental Affairs and House Govt. Reform committees to explain proposal by President Bush that would consolidate numerous federal entities and functions into one cabinet-level department. Department would consist of 4 units, including Information Analysis & Infrastructure Protection and Emergency Preparedness & Response divisions, latter of which would: (1) Develop communications technology interoperability programs and ensure “emergency response providers acquire such technology.” (2) Consolidate existing federal emergency response plans into “single coordinated emergency response plan.”
Following what wireless industry called “Herculean effort” in Congress that passed legislation delaying 700 MHz auctions, FCC followed suit Wed. by postponing bidding and planning for much smaller auction this summer, as directed by Congress. After whirlwind of Senate and House votes derailed timing of lower 700 MHz auction late Tues., attention on Hill and industry turned to larger spectrum issues that new law buys extra time for policymakers to address, including proposed spectrum relocation fund, 3G viability assessment, 800 MHz reconfiguration proposals. Rep. Pickering (R-Miss.) told reporters Wed. that moving bill that would create trust fund to reimburse federal agencies that had to relocate from bands auctioned to commercial users was “achievable priority” this year. Industry sources said they also expected release shortly of viability assessment from Administration that could free up close to 90 MHz, rather than 120 MHz that industry had sought, for 3G services, with trade-off being that bands would carry assurances of being usable in relatively short term.
Several senators called for national spectrum management policy as panelists at Senate Commerce Committee hearing Tues. discussed needs for more spectrum by both military and commercial sector. However, panelists weren’t able to say precisely how much spectrum would be needed, nor were they able to estimate how quickly a national policy could be developed. But legislation probably would be part of spectrum management overhaul, said Senate Communications Subcommittee Chmn. Inouye (D-Hawaii) and Sen. Wyden (D-Ore.). Sen. Burns (R-Mont.) said he would be introducing spectrum management legislation after General Accounting Office (GAO) releases “comprehensive” report on issue.
S.C. legislature adjourned 2002 session without passing Senate proposal to restructure PSC and without acting on election of PSC commissioners. Senate in final week tried to get PSC reforms through by attaching them as amendments to electric utility reporting bill (HB-5108) and campaign finance reform bill (HB-5346), but in each case House refused to accept amendments. Failed legislation would have created new state Office of Public Staff to take over utility consumer advocacy functions of PSC and S.C. Dept. of Commerce staffs. It also would have required college degree and some relevant work experience as minimum qualification for PSC membership, staggered members’ terms and barred spouses or children of sitting legislators from being PSC commissioners. Legislation was intended to address concerns about inadequate PSC understanding of issues before agency and appearance of inappropriately cozy relationships between PSC members and regulated companies. House leaders said they wanted more time for considering PSC reforms than the one week Senate allowed. Legislature also failed to act on election of 7 commissioners from field of 26 candidates. PSC spokesman said that meant agency’s 6 incumbent commissioners would continue to serve until next year’s legislature acted to reelect or replace them; it was unclear what would be done about filling PSC’s vacant 7th seat in interim.