House Commerce Committee Chmn. Tauzin (R-La.) told investment community Wed. that he was enthusiastic about ultra-wideband (UWB) wireless technology and hoped FCC would look at it carefully. Proposal to permit UWB products to operate as unlicensed Part 15 devices is expected to be on FCC agenda at Feb. 14 meeting, he said in speech at Precursor Group conference in Washington. Tauzin said he visited UWB company Time Domain and was impressed by its founder Larry Fullerton, “an interesting guy who has been called the new Marconi.” Tauzin told investors UWB was trend to watch, explaining how technology goes through walls, could result in high-tech home security systems, communications devices for military, disaster recovery aids. “My hope, my prayer, to the Commission is to give it a good look,” he said. Tauzin said that taking up “twin issues” of privacy and security were among his Committee’s most important tasks this year. “The first battle line” is copyright, he said, “how to provide a digital product without losing value… coupled with security needs.” He said other “things to watch” were: (1) Efforts to develop privacy policy that would “enhance private efforts to self-regulate. (2) Broadband deployment. (3) Digital TV transition. (4) “Increasing capacity of wireless communications.” He also made pitch for Tauzin- Dingell bill, saying it was “not about pleasing the Bells” but rather was designed to “complete the Telecom Act.” Act didn’t contemplate growth in data communications and Internet, he said. As it is now, Act stymies development of high-speed data transmission because of restrictions on Bells, he said. Act’s mistake was to put FCC in charge of deciding when Bells could provide interLATA communication, which is required to offer broadband effectively, Tauzin said. Decision was left to “these bureaucrats whose raison d'etre is to regulate,” he said. “We left it to them to eliminate regulations, what were we doing? The FCC has become an agent for the past.” He said he thought Tauzin- Dingell would pass House and “then we will go and deal with Mr. Hollings [Sen. Hollings (D-S.C.) and chmn. of Senate Commerce Committee]), who has a different view.” Talking with reporters later, Tauzin said if Committee’s meetings with industry leaders on DTV transition didn’t result in agreement soon (CD Nov 30 p6), legislation to resolve issue probably would be introduced in April-May time frame. He said there had been progress in last 2 meetings and another was planned later this month. Meanwhile, spokesman for House Commerce Committee said it appeared House leadership would schedule vote on Tauzin-Dingell on either Feb. 27 or 28, slightly sooner than March projection given when bill was pulled from floor in Dec.
Commerce Dept. Undersecy. Phillip Bond and heads of various agency departments praised President Bush’s FY 2003 budget at briefing Tues., insisting that shift in priorities for high-tech grant programs would benefit telecom and high- tech. Administration plans to eliminate Technology Opportunities Program (TOP) and scale back Advanced Technology Program (ATP) while shifting focus to other areas such as National Institute of Standards & Technology (NIST) and Patent & Trademark Office (PTO) (CD Feb 5 p1). Bottom line, Bond said, is that Bush budget contains “more in science and technology than any budget in history.” He praised Administration for making technology “one of the essentials” in time of budget restraint between needs of economy and war on terrorism.
Parallel deregulation bills introduced in Hawaii House and Senate would establish price cap regulation system for Verizon Hawaii, state’s only incumbent telco. Legislation (HB-2255 and SB-2864/SB-2874) would establish indexed cap system that Verizon, currently under rate-of-return regulation, could elect. Alternative system would cap basic local service at rates in effect at time of election, with annual adjustment for inflation as measured by Gross Domestic Product Price Index. Inflation adjustment would be limited to maximum of $2 annually during first 3 years of program unless exogenous factors including terrorist acts substantially changed carrier’s costs. Access charges would be capped, with carrier allowed to raise basic local rates to offset PUC-ordered access charge reductions. Retail rates could be cut by any amount as long as they stayed above long- run incremental cost. Rates for nonbasic and competitive services would be deregulated, except for ban on below-cost pricing. There would be no explicit prerequisites or trade- offs for election of price caps. Verizon supports legislation while Hawaii PUC hasn’t yet taken stand. Another new Hawaii bill (SB-2272) would shift regulatory jurisdiction over cable TV from state Dept. of Commerce & Consumer Affairs to state’s counties. Bill would require cable TV operators to pay gross receipts surcharge to counties.
Although he signed FCC filing on Transportation Dept.- funded research on ultra-wideband, Stanford U. Prof. Bradford Parkinson said he wasn’t involved in conducting study, meaning his corporate ties to GPS developer Trimble posed no conflict. In Sept. 2000, Parkinson, who is widely viewed as “Father of GPS,” jointly submitted to FCC ex parte filing with other Stanford researchers outlining preliminary results of UWB tests conducted by GPS Research Lab at Stanford and funded by DoT. “We urge the Commission to proceed with great caution and deliberation,” said filing by 4 professors, including Parkinson, that described research challenges of analyzing UWB-to-GPS interference. But Parkinson said Mon. his role in research, which had been among studies cited by federal agencies concerned about potential of UWB emissions to cause harmful interference to GPS, was to evaluate results after test phase was complete. He said Assoc. Prof. Per Enge oversaw research itself.
Corporate R&D backed by federal govt. would have more- targeted focus on commercial success while assisting those truly in need of support, under the FY 2003 budget released by President Bush Mon. “Dollars will go to programs that work,” budget said: “Those programs that don’t work will be reformed, constrained or face closure.” Numerous federal programs offer loans or grants to companies or research institutions to back R&D that eventually could lead to commercial applications. One to be shuttered if Bush gets his way is Technology Opportunities Program (TOP), favorite of legislators. He also proposed reducing Advanced Technology Program (ATP), another congressional favorite, in favor of additional funding for the National Institute of Standards & Technology (NIST).
NTIA released report Fri. outlined need for more spectrum for critical infrastructure providers in energy, water and railroad sectors, concluding that urgency of those issues might have changed following Sept. 11 terrorist attacks. Report to Congress, required by fiscal 2001 appropriations act that covered Commerce Dept., catalogued congestion that infrastructure providers faced in land mobile portion of spectrum. “It is of utmost importance that the Federal Communications Commission revisit these critical issues in order to accommodate the increasing role these industries play in maintaining quality of life,” report said. It cited continued use of spectrum as “essential to the current and future operations of these industries.” NTIA said industry feedback it received in preparing report pointed to spectrum that was “either congested or quickly approaching critical mass, thus leading to problems of interference.” NTIA said industry consensus called for additional spectrum, citing lack of bands available for new users. Report has been closely watched by private wireless industry who have raised concerns about Nextel proposal pending at FCC that would reconfigure some public safety, private wireless and commercial operators at 700, 800 and 900 MHz.
Motorola urged FCC to not delay decision on ultra- wideband, saying in ex parte filing that it was “unlikely that the Commission will gain any significant new insight into the potential of UWB to interfere by further delaying a decision.” Commission is expected to include UWB item on agenda for Feb. 14 meeting after postponing it at Dec. meeting in deference to request by Commerce Secy. Donald Evans for more time to evaluate issue. Motorola also proposed compromise for UWB limitations, saying it agreed that allowing UWB to operate at Part 15 limits above 5 GHz “while limiting UWB emissions below 5 GHz to levels that are in line with industry-developed standards for protection of services” would strike balance of interests. Motorola said Defense Dept. had backed limiting UWB operation to above 4.2 GHz and coalition of companies, including some wireless carriers, sought limitations on UWB operations to above 6 GHz. Motorola said FCC had to ensure that existing services were protected from potential interference by UWB. “This protection can only be adequately afforded by setting appropriate technical limits rather than trying to construct a complex and unenforceable regulatory structure that severely limits the operational abilities of UWB while still not ensuring adequate protection to existing services,” company said. Equipment manufacturer cited “considerable debate” in UWB docket on correct way to interpret various interference studies submitted to Commission. “One thing should be clear, however: the rights of a Part 15 user should not exceed the rights of the licensed primary user of the spectrum, nor should Part 15 operations be permitted to disrupt a carefully managed radio environment,” Motorola said. Company cited industry standards for protecting PCS services in relation to Part 15 emission limits. It said industry “finds it necessary to protect itself to a level significantly greater than what is required under the Commission’s rules.” That means FCC shouldn’t allow UWB emissions above levels that wireless industry had imposed on itself -- 16-24 dB below Part 15 levels, Motorola said. It said FCC should err on side of protecting GPS and limit emissions in GPS band to 27-35 dB below Part 15 levels, depending on type of UWB emission. Company urged Commission not to rely on “artificial regulatory constraints” such as barring peer-to-peer communications or limiting UWB use to indoors.
XtremeSpectrum CEO Martin Rofheart told reporters Tues. that issue of peer-to-peer networking appeared to be “in play” in intragovt. policy discussions that continued to intensify on ultra-wideband (UWB). NTIA submitted UWB policy recommendation to FCC earlier this month that would restrict intentional emissions below 4.2 GHz and restrict peer-to-peer networking of UWB devices (CD Jan 24 p5). UWB item has been expected to be included on agenda of FCC’s Feb. 14 meeting and discussions between NTIA and FCC have ramped up to meet that target. On issue of peer-to-peer networking, Rofheart said at media briefing that based on company’s recent discussions with govt. officials, issue of peer-to-peer networking still was part of discussion. Rofheart stressed that XtremeSpectrum’s position on UWB was in line with that of Dept. of Defense, which has asked NTIA to advocate that there be no intentional UWB emissions below 4.2 GHz, except for imaging systems. “We are well aware of DoD’s positions and DoD is well aware of XtremeSpectrum’s position,” Rofheart said. Prohibiting intentional UWB emissions between 3.1 GHz and 4.2 GHz is overly conservative and not backed by research as being necessary, Rofheart said, but XtremeSpectrum agreed to that as way to move embattled proceeding along. “There is a lot to be said for simply getting on with commerce,” he said. Peer-to-peer networking issue is important for XtremeSpectrum because that capability allows 2 battery- operated UWB devices to use high-data radio frequency link to exchange information. “There should be no peer-to-peer restriction, that would kill the industry,” Rofheart said. “But the emission mask is one that would allow it to occur.” FCC appears to be on track to have UWB item on agenda of Feb. 14 meeting, Rofheart said.
Media Access Project (MAP) is pressing FTC to provide details on events leading up to proposed revision of FTC and Dept. of Justice (DoJ) antitrust oversight jurisdiction. Govt. recently dropped plan to announce proposal that would have given media merger oversight exclusively to Justice. MAP Pres. Andrew Schwartzman recently urged (CD Jan 23 p6) Senate Commerce Committee Chmn. Hollings (D-S.C.) to open investigation into FTC-DoJ plan, which critics say was devised without proper consultation with Congress or with all FTC commissioners. Hollings’s aides recently met (CD Jan 28 p3) with DoJ staff to ascertain circumstances leading to proposal, but said questions remained unanswered after meeting and additional discussions were planned. Schwartzman asked FTC Chmn. Timothy Muris in letter dated Jan. 29 to elaborate on reorganization plan “within 72 hours.”
Center for Digital Democracy (CDD) said it had filed Freedom of Information Act (FOIA) request to learn more about planned merger review clearance process involving FTC and Justice Dept. (DoJ). Proposed agreement, which was delayed after Sen. Hollings (D-S.C.) raised questions, would give DoJ review authority over all media mergers, including Internet, cable, telecom and software. FTC still would review computer hardware mergers. Many consumer advocacy groups, including CDD, were upset by proposed agreement because they felt FTC had more knowledge and experience with consumer and free speech issues associated with media mergers. Secretive manner in which agreement was reached -- at least 2 FTC commissioners said they didn’t know about negotiations between FTC and DoJ until shortly before FTC Chmn. Timothy Muris planned to announce agreement -- also was concern for many advocacy groups. “CDD has grave concerns about how such a decision was reached without public awareness, including Congressional oversight,” CDD said. In its FOIA request, CDD sought reports, letters, memoranda and e-mails related to the negotiation. It also named several private attorneys. CDD, along with other consumer groups, has raised questions about the influence of private attorneys in development of the agreement. The FOIA request includes any communication between FTC and DoJ staff and attorneys Joe Sims, Steven Sunshine, Kevin Arquit and Bill Baer. CDD Exec. Dir. Jeff Chester said his organization would “aggressively pursue” matter and continue to query govt. officials about proposed agreement. He also said he didn’t expect any redaction of information requested under FOIA. “Unless they were talking about the price of AOL or Enron stock, I don’t see what they would have to hide,” Chester said. “We want to ensure that the public understands how and why this plan was put together.” DoJ staff is expected to meet this week on agreement with Senate commerce and appropriations committee staffers. Hollings spokesman said 2 groups met last week, but follow-up session was needed because DoJ couldn’t answer several questions posed by congressional staff.