Loral CEO Bernard Schwartz expressed confidence State Dept. finally would approve sale of ChinaSat 8 communications satellite, following months of delay. In briefing at Satellite 2001 in Washington, Schwartz said he was “more optimistic now than I was before,” deal would go through, citing change in Administration: “The new Administration relieves the focus on the political issues to some degree. It’s a more favorable climate.” State Dept. spokesman had no comment.
Commerce Secy. Donald Evans met with wireless industry Thurs. on 3rd generation wireless issues, sending signal that all spectrum bands still were on table, sources said. Evans held hastily-called 30-min. meeting with wireless carriers and equipment manufacturers in advance of final reports that are set for release today (Fri.) from FCC and NTIA on options for additional spectrum for advanced wireless services. “The report that is coming out tomorrow is a first step in the process,” Evans spokesman said. Several sources indicated meeting appeared to be proactive step by Administration to allay industry concerns over serious questions raised by Dept. of Defense on challenge of sharing spectrum with commercial wireless systems in short term.
Wireless industry is watching closely final reports due Fri. from FCC and NTIA on potential spectrum that can be tapped for advanced wireless services, including 3G. Several sources have indicated they didn’t expect significant changes in FCC draft report issued last fall, which said segmenting and sharing in MMDS and ITFS bands to allow operations of advanced mobile services would pose technical challenges. One widely expected change is that final NTIA report will be much more inclusive than draft on interference concerns raised by Defense Dept. NTIA interim report last year had outlined potential spectrum sharing and segmentation opportunities in some cases between new wireless users and govt. incumbents. Serious challenge draft cited was sharing with uplink satellite control systems. But Pentagon sent letter to Commerce Secy. Donald Evans last month raising concerns that loss of access to spectrum beyond that relinquished by military in Omnibus Budget Reconciliation Act of 1993 and 1997 Balanced Budget Act “would jeopardize the DoD’s ability to execute its mission.” DoD is submitting report to NTIA for inclusion in final report. Letter to Evans says DoD report concludes that sharing 1755-1850 MHz isn’t possible “due to predictable, mutual interference over large geographic areas and major metropolitan centers.” Mitigating expected interference “would require unacceptable restrictions on military operations, training and readiness,” former Deputy Defense Secy. Rudy De Leon said. He told Evans that DoD report concluded that “regardless of financial investment,” Pentagon couldn’t vacate or segment band until at least 2010 for nonspace systems and at least 2017 for space systems. Those dates could stretch out to 2030 for some satellites, he wrote. DoD said that such conclusions were based on principle that DoD couldn’t accept any degradation of its mission capability as result of spectrum reallocation. “The 1755-1850 MHz band is indispensable to the defense of the United States and its allies,” DoD wrote. “Our nation’s armed forces would be at a substantial strategic and tactical disadvantage in combat and the execution of military operations could be jeopardized if the Department lost its use of the band.” “I think that they are viewing the DoD report as the basis of their report and they are going to follow it,” said one industry source of upcoming NTIA report. Industry, on other hand, has outlined scenarios in which segmentation and sharing are possible in band at least in short-term to mitigate interference issues. With both FCC and NTIA reports expected to focus on challenges to sharing in respective bands, attention in industry is turning to who in Bush administration will take most active role as FCC and NTIA negotiate, sources said. “As a matter of practical negotiation, FCC doesn’t hold many strong cards,” said Precursor Group analyst Rudy Baca. “FCC is asking NTIA/the government for some of their spectrum ‘please.’ The response is usually, ‘No, it’s ours and we need all of it.'” As result, it becomes more difficult to carry out simple negotiations between FCC and NTIA, when former lacks full complement of commissioners and latter doesn’t yet have permanent director, Baca said. “It is going to take someone higher up in the Administration -- maybe Secy. of Commerce Don Evans or somebody in the White House.” MG
Communications lawyers on Washington Legal Foundation panel on FCC and Communications Policy split 2-2 on whether major revamp of FCC is needed immediately. “It’s hard to disagree about the need to overhaul the FCC,” according to attorney Nick Allard of Latham & Watkins. Moderator and former FCC Chmn. Richard Wiley did disagree, sharply, with Allard -- who called for abolishing 4 of 5 commission seats and actively involving Commerce Dept. and NTIA in regulation of various communications industries. What FCC needs, countered Wiley, is more delegation of authority to staff and more rapid decisions -- something that can be accomplished with present structure -- and “Chmn. Powell can get it done.” Because of Congressional respect for Powell, any agency reform “is going to come first from the FCC itself,” rather than from Hill, Wiley predicted. Panelist Charles Kennedy of Morrison & Foerster generally agreed with Allard, while David Poe of LeBoeuf, Lamb, Greene & MacRae partly sided with Wiley. Commission doesn’t need revamping for short term, Poe said, but major overhaul may be necessary in long term. Kennedy said FCC operations were “outmoded… We are going to have to make some fundamental changes… if things don’t turn around.” Allard listed 10 questions that must be answered on FCC’s future, including whether competition was prerequisite for deregulation or was it other way around and did Commission’s current organizational structure make sense. Poe said Powell had shown “he’s not afraid to grapple” with tough issues and that there are many “ambiguities and contradictions” in 1996 Telecom Act. “Statutory reform” of FCC is needed, he said, but it will be very hard to get Congress to pass legislation on issue. On digital TV, Poe said FCC had tried to push broadcasters into new technology but “you can’t make a market if the market isn’t there.”
LAS VEGAS -- FCC Chmn. Powell stressed need for national spectrum planning at CTIA Wireless 2001 show here Tues., while acknowledging importance of policy role of Dept. of Defense for frequencies used for military operations. “We can’t trivialize uses of spectrum for national defense,” he said in response to series of questions from CTIA Pres. Thomas Wheeler. Meanwhile, parade of high-tech executives ranging from Yahoo Co-founder Jerry Yang to Intel Pres.-CEO Craig Barrett stressed that mobile Internet shouldn’t be seen as surpassing fixed-line Web because multiple devices would provide access to Internet.
Commerce Dept.’s International Trade Administration is arranging “schedule of tailored prearranged one-on-one appointments with qualified business contacts” and meetings with “key Russian government and industry decision-makers” May 12-19 during telecom/information technology trade mission to Russia. Executive level mission costs $2,900 and application deadline is April 6. -- 202-482-0573.
E-rate program won’t be folded into block grants to states along with Education Dept. technology programs in Bush Administration’s initial proposal to Congress, but that doesn’t mean it won’t meet that fate later, Education Dept. spokeswoman told us. E-rate supporters were cheered this week by Education Secy. Roderick Paige’s comments at House hearing that e-rate wouldn’t be included. But spokeswoman told us that was just for logistical reasons, since e-rate wasn’t funded by Education Dept. and no final policy decision had been made. “We are considering - - and continue to consider -- if the e-rate can or should be consolidated with other technology grant programs,” she said. “The fact that the e-rate is not in the Department’s jurisdiction makes the considerations different.” Several House Telecom Subcommittee members defended e-rate at Thurs. hearing. Ranking Commerce Committee Democrat Dingell (Mich.) said tinkering with e- rate would be “disaster for schools and libraries everywhere, but particularly those in the neediest areas of the country who have come to rely so heavily on this program.” However, Dingell also renewed his concerns that some telecom carriers might be over- collecting for e-rate and pocketing the difference. Subcommittee ranking Democrat Markey (Mass.) also backed e-rate, as did several witnesses. Meanwhile, Dingell said he would reintroduce his bill to use money from phone excise tax (estimated $6 billion per year) to pay for digital divide trust fund while excise tax was phased out over period of several years. He said some of that money could be used to strengthen NTIA’s Technology Opportunity Program (TOP), which is favored by Subcommittee Chmn. Upton (R-Mich.). Dingell said he would reintroduce bill with Rep. Towns (D-N.Y.) “in the near future” and hoped to work with Upton on it. He also took indirect swipe at FCC Chmn. Powell, who has questioned existence of meaningful digital divide. He said Powell’s father, Secy. of State Colin Powell, was member of board of PowerUp, “whose explicit mission is to close the digital divide. So it appears that at least the elder Powell would agree the digital divide issue is an important one.” Upton said he would focus on several education technology programs this year, not just e-rate and TOP. He singled out Instructional TV Fixed Service (ITFS) licenses, saying they were “very much on our Subcommittee’s radar screen as our nation grapples with spectrum management issues.” Full Committee Chmn. Tauzin (R-La.) said he wanted “every child in Louisiana to have access to the Internet” before he leaves Congress. However, he also said it was “important to understand” that closing digital divide “is not strictly dependent upon federal support,” praising companies such as WISH-TV that make voluntary contributions of Internet access.
Bush Administration support for changing export controls gives Aerospace Industries Assn. (AIA) hope of bringing change in policy on selling satellites overseas, Pres. John Douglass said in briefing Wed. in Washington, where Assn. proposed 16 changes in current export control system. Export controls require companies to obtain export licenses for satellites, rockets and component parts in process that treats parts as munitions, process that has taken average of 100 days, Vp-International Affairs Joel Johnson said. Items on U.S. munitions list requiring export license include “widely available” components such as “nuts, bolts and screws,” he said. Controls also leave components vulnerable to military sanctions and require foreign countries to get permission from U.S. to sell components to 3rd party if percentage of U.S. supplies exceeds 20%.
Satellite Industry Assn. (SIA) understands national security argument for maintaining State Dept. oversight of satellite launch and missile technology exports, but it says State export licensing of commercial satellites lacks logic and puts U.S. companies at competitive disadvantage with terrestrial capacity providers and foreign manufacturers. SIA Exec. Dir. Clayton Mowry sees this year possibility that some congressional defense hawks may support satellite export bill (CD March 6 p2) being drafted by Rep. Berman (D-Cal.) if it strikes balance between national security and competition concerns. Although still in early development stage, Berman bill would return most commercial satellite licensing authority to Commerce from State while incorporating State and Defense Dept. special review process on satellite exports to China.
Rep. Berman (D-Cal.) is drafting legislation that would return U.S. commercial satellite export licensing jurisdiction to Commerce Dept. from State Dept. while incorporating State and Defense Dept. special review process on satellite exports to China. Staffer said Berman was gauging potential co-sponsors’ responses before introducing bill, which he said would be finalized at unspecified date.