Senate Commerce Committee witness list for its broadband and local telecom hearing May 22 includes House Telecom Subcommittee ranking Democrat Markey (Mass.), Cal. PUC Pres. Loretta Lynch, Mich. PSC Comr. Robert Nelson, Pa. State Sen. Mary Jo White (R-21), Mass. Dept. of Telecom & Energy Chmn. Paul Vassington. Hearing is at 9:30 a.m., Rm. 253, Russell Bldg.
Supporters of Senate Commerce Committee Chmn. Hollings’ (D-S.C.) broadband legislation on Wed. highlighted lackluster demand for high-speed Internet as reason why his more limited bill made more sense than House’s Tauzin-Dingell version. ILEC deregulation legislation, such as Tauzin-Dingell (HR- 1542) and Breaux-Nickles (S-2430), doesn’t address demand issues and would further stifle broadband competition, said witnesses who included Reps. Markey (D-Mass.) and Cannon (R- Utah), 3 state telecom regulators and Pa. state senator. Hollings asked: “We are at a crucial juncture in telecommunications policy -- are we going to hold steadfast to the goal of competition and allow it to continue guiding our decision making, or are we going to allow groups with other objectives in mind to guide our actions?” Opponents of Tauzin-Dingell told Hollings and committee there was no “crisis” in broadband deployment that needed legislative fix. Hollings’ bill (S-2448) is designed to help fund broadband rollout to rural areas. No witnesses spoke in favor of HR- 1542, S-2430 or similar regulatory approaches.
Nuala Kelly promoted to chief counsel, Commerce Dept. Technology Administration… Promotions at AOL: James Bankoff to exec. vp-operations, AOL interactive services; David Gang to exec. vp-product mktg.; Joel Davidson, exec. vp-COO, Web Properties Group, replaces Bankoff in overseeing group… Jay Itzkowitz promoted to senior vp-mergers & acquisitions, Vivendi Universal… Additions at Access Spectrum: John Bruno, ex-Pentech Financial Services, vp- finance; Charles Ellis, Ellis Engineering, vp-engineering; John Vislosky, ex-Korn/Ferry International, senior vp- sales… Discovery named Vivian Schiller, ex-Turner Bcstg., gen. mgr., Discovery Civilization Channel… Joy Howell, ex- FCC, opens Washington office for Weiser Group, marketing communications firm… Don Winters, Whitehawk Partners, joins Hyperspace Communications advisory board.
Trade associations in information technology (IT) and telecom sector submitted plan to federal govt. on steps they said were needed to ensure operational continuity of nation’s communication networks. CTIA, Information Technology Assn. of America (ITAA), TIA and USTA submitted plan to NTIA Dir. Nancy Victory and to Richard Clarke, chmn. of President’s Critical Infrastructure Protection Board and cybersecurity adviser to President. Plan is intended to be incorporated into “National Strategy” on infrastructure protection, which is to be released in July. Document includes several “first principles,” including: (1) Put critical infrastructure assurance into context. IT and telecom sector must realize that its products and services are used to protect infrastructure assets of other sectors. (2) Look at how roles are established and partnerships are built. (3) Consider next steps. CTIA, ITAA, TIA and USTA are sector coordinators responsible for developing sector-specific input for the strategy. Report noted that last July, impact of computer worm Code Red was mitigated by “rapid mobilization” of Internet community, including National Security Council, FBI’s National Infrastructure Protection Center, Commerce Dept.’s Critical Infrastructure Assurance Office, Defense Dept.’s Joint Task Force for Computer Network Operations, AOL, UUNet and others. “The experience validates the existence and capability of a virtual emergency response network within the I&C Sector,” report said. “Attacks will no doubt continue into the future, although the type and severity of the event is apt to change. It is not yet clear whether the ad hoc nature of the emergency response team is beneficial, allowing participants to vary as attacks vary, or whether a more formal mobilization process is warranted.” Report said answering that question was important next step. It said “uneven international response” to Code Red worm demonstrated need for more international solutions to critical infrastructure assurance. One possibility is creation of international critical infrastructure assurance coordinating center that would promote sharing of best practices in information security and coordination on cybercrime incidents. Other “next steps” include: (1) Ascertaining legislative initiatives, such as tax credits, that may be needed. (2) Assessing vulnerabilities that “may be created as the public increasingly uses wireless devices and wireless LANs to conduct Internet-based transactions.” (3) Ascertaining what additional vulnerabilities are created “as the public increasingly uses wireless devices and wireless LANs to conduct Internet-based transactions.”
Mass. Gov. Jane Swift (R) removed James Connelly from chairmanship of Dept. of Telecom & Energy (DTE), replacing him with Comr. Paul Vasington. Connelly remains on DTE as commissioner. Connelly was appointed DTE chmn. in March 2000 by then Gov. Paul Cellucci (R). Swift spokesman said there was no single reason for ousting Connelly, but local news reports indicated he had been under fire in recent months for what critics called his anticonsumer leanings and for contentious personal style that antagonized key members of Swift’s administration. Connelly said Swift’s decision was arbitrary, but Swift spokesman said it was legal because DTE chairmen were designated by governor and could be removed at governor’s pleasure. Connelly isn’t alone in losing top commission post for political reasons. Ill. Commerce Commission Chmn. Richard Mathias will leave agency in Sept. Ill. Gov. George Ryan (R) withdrew nomination of Mathias for another term as chmn. last month in face of adamant opposition by Republican Senate leaders that stalled confirmation.
Senate 64-35 approved farm bill conference report that would provide $100 million in rural broadband loans and loan guarantees from 2002 to 2007. Bill had moved slowly in 107th Congress due to controversy over several agriculture and nonfarm subsidy provisions. Although $100 million total for broadband infrastructure deployment initially had been proposed for distribution each year, conference compromise would allot: (1) $20 million for each of fiscal years 2002 through 2005. (2) $10 million for each of FY 2006 and FY 2007. Despite reduced total for Rural Utilities Service (RUS)-administered program, several senators said funds would benefit underserved rural areas. Sen. Dorgan (D-N.D.) said Wed. on Senate floor that in light of unparalleled success of past RUS telecom loan programs, combined with Treasury rate of interest, $20 million annual authorization could be leveraged into “broadband loan program of at least $750 million a year.”
Senate Commerce Committee Chmn. Hollings (D-S.C.) has no intention of becoming involved in renewed wireless industry attempts to negotiate settlement among NextWave spectrum re- auction winners, according to knowledgeable source. Senate Appropriations Committee ranking Republican Stevens (Alaska) met Tues. afternoon with NextWave and carriers that last year bid nearly $16 billion on spectrum that bankrupt company had returned to FCC (CD May 6 p4).
NEW ORLEANS -- Aides to several key members of Congress said their bosses were reluctant to mandate answers to DTV transition, although some still were holding out that threat as motivation for leaders of cable, broadcast and consumer electronics industries to work out their differences -- and fast. Their comments came on NCTA convention panel discussion late Mon. on cable issues as seen from Capitol Hill. Jessica Wallace, aide to House Commerce Committee Chmn. Tauzin (R-La.), said he had seen progress in series of informal roundtables his committee had been holding with industry leaders and was hopeful that issues could be resolved by companies, rather than Congress. However, Bill Bailey, aide to Sen. McCain (R-Ariz.), said McCain recently threatened to simply set date to take back spectrum from broadcasters unless they acted to move off that spectrum themselves in reasonable period of time.
Aides to several key members of Congress said their bosses were reluctant to mandate answers to DTV transition, although some still were holding out that threat as motivation for leaders of cable, broadcast and consumer electronics industries to work out their differences -- and fast. Their comments came on NCTA convention panel discussion late Mon. on cable issues as seen from Capitol Hill. Jessica Wallace, aide to House Commerce Committee Chmn. Tauzin (R-La.), said he had seen progress in series of informal roundtables his committee had been holding with industry leaders and was hopeful that issues could be resolved by companies, rather than Congress. However, Bill Bailey, aide to Sen. McCain (R-Ariz.), said McCain recently threatened to simply set date to take back spectrum from broadcasters unless they acted to move off that spectrum themselves in reasonable period of time.
Sens. Ensign (R-Nev.) and Kerry (D-Mass.) introduced bill that would delay 700 MHz auctions from scheduled date of June 19. Bill reflected text of HR-4560, which House Commerce Committee marked up Thurs. and which is scheduled for House floor vote Tues. Ensign-Kerry bill, unveiled late Thurs., came as Sen. Stevens (R-Alaska) continued to press for countervailing legislation that would compel FCC to hold auctions for upper and lower 700 MHz bands on time. Meanwhile, source said Stevens was hosting meeting in his office Tues. with NextWave re-auction winners to discuss possibility of settlement. His office declined to comment on talks, which were said to be exploratory in nature.