Consumer groups said Comcast’s proposed $72 billion merger with AT&T Broadband would “place a chokehold” over nation’s access to TV, Internet and other broadband services and warned they would try to persuade federal regulators to block deal between nation’s first and 3rd largest cable operators. Two senators called for hearing early next year, saying they had “serious concerns” and want to explore impact of new AT&T Comcast as well as proposed merger of satellite service providers EchoStar and DirecTV. Sens. Kohl (D-Wis.) and DeWine (R-O.), chmn. and ranking minority member, respectively, on Subcommittee on Antitrust, said they were particularly bothered by rising cable rates. “We continue to believe that more competition, rather than additional consolidation, is needed in this industry,” they said. However, Kohl and DeWine said they also recognized potential benefits, such as introduction of cable telephony to more consumers as viable alternative to local telephone companies.
Lack of broadband standards and such things as “plug-and- play” equipment is delaying move toward broadband, according to surveys unveiled Mon. at digital rights management (DRM) conference sponsored by U.S. Commerce Dept. But speakers repeatedly emphasized they didn’t want govt. intervention in DRM. While Bush Administration isn’t yet “frustrated to the point of legislation” about lag in broadband deployment, it’s looking at ways to “generate some heat and maybe a little light” on issue, Commerce Undersecy. Phillip Bond said. Challenge is that despite its availability to 85% of U.S. homes, only about 10% have signed up, Asst. Secy. Bruce Mehlman said.
While Bush Administration isn’t yet “frustrated to point of legislation” about lag in broadband deployment, it’s looking at ways to “generate some heat and maybe a little light” on issue, Commerce Undersecy. Phillip Bond said Mon. Challenge to greater broadband use is that despite its availability to 85% of U.S. homes, only about 10% have signed up, Asst. Secy. Bruce Mehlman said. Surveys point to several problems, he said: (1) Cost. (2) Concern over lack of “plug-and-play” equipment. (3) Belief among many that broadband is solely office service. (4) Lack of consumer dissatisfaction with current services. (5) Absence of killer content. Govt. can help promote broadband use by educating people about its value and launching e-govt. services, Mehlman said, but most important work must be done by technologists, engineers, entrepreneurs. Unlocking content is key, he said. Comments came at a Commerce Dept. Technology Administration workshop on “Understanding Broadband Demand: Digital Content & Rights Management.”
FCC Deputy Gen. Counsel John Rogovin told Practising Law Institute conference in Washington that agency was “seriously hopeful” that Congress would pass legislation implementing NextWave agreement by year-end. But in response to question by panel moderator Richard Wiley, he declined to place odds on Congress’s acting in time to meet condition of settlement agreement that legislation be approved by Dec. 31. He said that beyond that date, “there can be no guarantee we will hold that coalition together. It was pretty fragile.” Under scenario in which request for certiorari before U.S. Supreme Court would move forward next year, even with ultimate ruling favorable to FCC, certainty on disposition of licenses still might not be assured until 2004, he said, citing court scheduling issues.
Legislators and regulators in Mich., Minn., Colo. and Tex. addressed no-call telemarketing lists as 2001 drew near close, while Ind. law enforcement officials warned public of telemarketing scam that exploited state’s new no-call list.
Proposed mandatory energy conservation standards for high- tech products are based on “incomplete data” and could increase nation’s energy consumption, CEA told Dept. of Energy (DoE). CEA filed comments in response to Nov. 6 public meeting at which agency proposed about 15 new products, including computers, monitors, set-top boxes and TVs, to be included in DoE’s energy conservation program guidelines for appliances. Dept. proposed “one quad cutoff” for new product consideration and released list of products for which cumulative energy savings was reported to exceed one quadrillion BTUs. Energy consumption standards “would force manufacturers to substantially alter product designs, which would adversely affect the performance and features of those products,” CEA said: “A product that can achieve the ‘best available’ energy efficiency may be a ‘de-featured’ product, meaning a product that possesses the fewest possible features. Such products are likely to have very limited market appeal and a very low sales volume.” For example, mandatory energy standard may make it impossible for manufactures to incorporate DVD player into set-top box, it said. Instead, consumers would be forced to purchase 2 devices and increase overall energy consumption, CEA said. The proposed standards “are as onerous to manufacturers as the energy bill pending in Congress,” said Douglas Johnson, CEA dir.-Technology Policy, referring to HR-4 by House Commerce Committee Chmn. Tauzin (R-La.) passed by House Aug. 2 and on Senate calendar since Sept. 4 (CED Nov 6 p4). That bill would direct DoE to limit household appliances in standby mode to power consumption of 1 w. CEA said DoE data sheets released at public meeting on potential energy savings of set-top boxes were based on “best available” efficiency of 1 w in standby mode. However, “nowhere in the background material does DoE indicate that a one- watt standby set-top box is available” and document said 1 w standby feasibility was “unclear.” “It is crucial that DoE use real-world feasibility when calculating a product category’s energy savings potential,” CEA said. For TVs, monitors and desktop PCs, much of predicted energy savings assume transition to LCD technology. While LCD technology offers “significant energy saving” compared with CTRs, DoE should take other factors into consideration, CEA said. EPA study said LCD screens used much less energy in operation but required more energy to manufacture, CEA said. It said new standards for computers, monitors, set-top boxes and TVs were “unnecessary” because federal EnergyStar program, jointly administrated by DoE and EPA, currently covered those product categories. EnergyStar program has been successful in promoting energy efficiency of electronics because it “has focused exclusively on standby power or other low-power states” and has avoided most of serious complications associated with reducing “active mode” energy consumption “that can jeopardize technological innovation,” CEA said.
House Commerce Committee Chm. Tauzin (R-La.) is co- sponsoring standalone bill that contains language for implementing NextWave settlement agreement. Bill, filed Wed. afternoon, also is co-sponsored by Reps. Conyers (D-Mich.), Sensenbrenner (R-Wis.), Thomas (R-Cal.). “It is consistent with [FCC] Chairman Powell’s recommended settlement,” said Tauzin spokesman Ken Johnson. Legislation, which wasn’t available by our deadline, is expected to include virtually all of settlement’s provisions. One caveat is that language remain intact as part of implementing legislation or deal could be renegotiated. However, several sources have indicated that if only minor changes are made, that isn’t likely to happen. Bill is standalone proposal that’s expected to reach House floor as early as today (Fri.). Speculation earlier Thurs. had been that language could be tacked onto economic stimulus bill, which also is heading to House floor. Prospects are less clear in Senate, where Commerce Committee’s ranking Republican McCain (Ariz.) and Chmn. Hollings (D-S.C.) have raised concerns about timing of deal’s needing to be approved by Congress by year-end and other issues. Standalone bill in House comes within days of joint hearings by Judiciary and Commerce subcommittees at which some members raised concerns, although Tauzin said he expected it to be passed this year. Settlement, if finalized, would provide $6 billion to NextWave for relinquishing licenses and $10 billion to U.S. Treasury, to be paid by winners of FCC’s Jan. re-auction of C-block licenses, such as Verizon Wireless. Johnson said there still were several options for how NextWave legislation could move in House now that bill had been introduced. One was that it could be attached to “must-move” legislation, he said. Legislation, “Prompt Utilization of Wireless Spectrum Act,” said it “authorizes and approves” decision by FCC and Justice Dept. to settle NextWave case. Bill would appropriate $9.5 billion to carry out settlement and contains provisions to ensure that govt. would receive its payment before NextWave. After final settlement approval, bill says NextWave would “completely relinquish” all claims to licenses and covered spectrum. It also would provide for expedited judicial review of challenges to settlement agreement and other issues.
Negotiations over data deregulation and database protection in House are being tied together to resolve jurisdictional disputes between Commerce and Judiciary Committees, industry sources said Thurs. Two industry sources said Judiciary Chmn. Sensenbrenner (R-Wis.) had taken lead in crafting database protection bill in exchange for relinquishing opposition to high-speed Internet bill (HR- 1542) by Commerce Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.). Sources said that might shed light on why Sensenbrenner, who for months had attempted to negotiate compromise version of Tauzin-Dingell, suddenly backed off from insisting that HR-1542 include provisions to expand Dept. of Justice oversight (CD Dec 10 p1) of Bell company applications for long distance authority.
House Rules Committee Chmn. Dreier (R-Cal.) announced Wed. on House floor that members must submit amendments to data deregulation bill (HR-1542) by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.) by 2 p.m. today (Thurs.), leading observers to believe bill would go to House floor Fri. Although House Judiciary Committee earlier this year had sent an amended version of HR-1542 to full House with negative referral, Judiciary Chmn. James Sensenbrenner (R-Wis.) has been negotiating with Tauzin to present compromise version. Sensenbrenner and other Judiciary members have sought to temper deregulatory bill by expanding Dept. of Justice oversight of Bell companies seeking long distance authority.
FCC Chmn. Powell said at Wed. agenda meeting that Commission “reluctantly” withdrew scheduled vote on ultra- wideband (UWB) policy in deference to request for more time from Commerce Secy. Donald Evans, with understanding that steps would be taken to put item on Feb. agenda. Powell said agenda items “rarely” were withdrawn. FCC took order off agenda late Tues. Evans had told Powell late last month that 60 additional days are needed to complete final analysis to ensure protection of critical govt. operations and safety-of- life services. Deputy Assistant Commerce Secy. Michael Gallagher told us he was “hopefully optimistic” that unified govt. position and agreement between FCC and NTIA could be reached in time for Feb. 14 agenda meeting. “What happens next is very important,” Gallagher said. “We have a limited amount of time.” NTIA has stepped up pace of meetings it has been holding with FCC and other federal agencies on issues related to UWB, he said. In last few weeks, there has been movement on some issues, but he declined to elaborate on specific areas of progress. Gallagher, who joined NTIA in early Nov., is heading up UWB policy issues because NTIA Administrator Nancy Victory is recused from those issues. “We need to go system by system through the affected government systems, that’s the trigger point,” Gallagher said. Commerce Dept. decided to ask for additional 60 days to balance needs of federal agencies that had stake in proceeding against critical timelines faced by UWB industry. “There were a number of agencies and outside parties calling for a further notice,” Gallagher said. Instead, Commerce Dept. ultimately asked for another 2 months as time frame that was “realistic and doable and doesn’t cause this industry to fail simply because the government was unable to act,” Gallagher said. Separately, United Airlines, which has raised concerns about potential interference that UWB systems might pose for GPS, lauded move by FCC to take more time. “The FCC does not manage, nor are they responsible for, the National Airspace System,” airline said: “This is the purview of the FAA and DoT. FCC actions should not, therefore, adversely impact airline operations or put passengers at risk.” Company said introduction of UWB devices into aviation safety-of-life bands would “erode public safety” and “compromise international protections” given to these frequencies. XtremeSpectrum CEO Martin Rofheart said that while company was “disappointed” with delay, “we are not surprised, as the terrorist attacks of Sept. 11 have placed extraordinarily high demands on our government and continue to do so in this unprecedented time in our nation’s history.” Rofheart said he was “confident” that FCC would issue rules within 60 days.