NTIA, in notice of proposed rulemaking (NPRM) Wed., outlined changes for how private sector would carry out mandates for reimbursing govt. agencies that relocate from spectrum after frequency reallocations are made. NTIA Dir. Gregory Rohde outlined details of NPRM at Commerce Dept. meeting with industry on upcoming 3rd-generation wireless decisions. Govt. officials stressed proposed framework for reimbursing federal entities that were relocated to other spectrum berths could play “critical” role in upcoming 3G decisions. FCC and NTIA are examining possibility of 2 bands for additional spectrum for 3G and other advanced services: 1755-1850 MHz now used by military systems and 2500- 2690 MHz used by Multichannel Multipoint Distribution Service and Instructional TV Fixed Service licensees. At meeting, some industry representatives also raised concerns that more information was needed from govt. on issues such as relocation cost estimates for private sector to complete its own analyses of different 3G spectrum scenarios.
Citing U.S. World Trade Organization (WTO) promises, former Commerce Secy. and U.S. Trade Representative Mickey Kantor urged FCC to approve license transfers for proposed $34-billion VoiceStream-Deutsche Telekom merger. VoiceStream submitted Kantor statement before close of comment period on merger Mon. “This FCC proceeding is about more than the acquisition of a U.S. common carrier by a foreign company,” he said. “It is a test of the United States’ compliance with binding international legal obligations which were negotiated and entered into in good faith.” In acting on VoiceStream-DT application, FCC must move in way that’s consistent with U.S. obligations under WTO Basic Telecom Agreement (BTA), he said. “Failure to do so could invite initiation of a WTO dispute settlement action against the U.S. government and would establish for other WTO members an unwelcome precedent of noncompliance,” Kantor said. He warned that scope of sanctions under General Agreement on Trade in Services (GATS) wasn’t limited to sector in which violation was found. That means, Kantor said, that if U.S. were found to have violated GATS, “it could be liable for trade sanctions in any sector.” Also, if U.S. were to act in way that indicated backtracking on trade commitments, it could damage its negotiating power in current talks, such as GATS services negotiations, he said. FCC shouldn’t restrict access to U.S. telecom market “based on market conditions in other countries that do not affect competition in the United States,” he said. Binding U.S. commitments under BTA don’t hinge on other countries’ implementation of their own duties, he said. In other reply comments, Organization for International Investment rebutted concerns raised by Sen. Hollings (D-S.C.) and DT competitors such as Global TeleSystems and Novaxess. Hollings, ranking Democrat on Senate Commerce Committee, last month had renewed his call to FCC to reject application, underlining his opposition to telecom assets bought by companies with majority foreign govt. investment (CD Dec 18 p6). In other comments, Siemens advocated approval of merger, saying it would increase U.S. telephony competition. Transaction still awaits approvals of Dept. of Justice, FCC and Committee on Foreign Interests in U.S.
Effectiveness of U.S.-Europe safe harbor agreement on Internet privacy is in question for telecom carriers because FCC hasn’t agreed to enforce U.S.-Europe privacy agreement, source in Commerce Dept. (DoC) told us. DoC is in talks with Commission in effort to bring it aboard safe harbor agreement, although some sources said European Union (EU) wouldn’t recognize FCC as legitimate enforcement agency. Telecom and common carriers can join safe harbor agreement, but only as it relates to functions outside realm of common carriers, sources said. Agreement reconciles strong European privacy rules with U.S.’s self- regulatory stance, guaranteeing that U.S. companies can do business in Europe.
Rep. Tauzin’s (R-La.) selection as next chmn. of House Commerce Committee was all but official Tues., well-placed sources told us, after House Rules Committee released long-rumored proposal to create expanded Financial Services Committee. New panel is expected to be headed by Rep. Oxley (R-O.), Tauzin’s rival to succeed former Commerce Committee Chmn. Bliley (R-Va.). Full House will vote today (Wed.) on committee changes, and Republican leadership will choose committee heads Thurs.