Public broadcasting and foreign ownership of telecom companies were among subjects on what House Commerce Committee Chmn. Tauzin called panel’s “ambitious” oversight agenda. List released Wed. includes topics Tauzin and others on Committee have talked about repeatedly in last few weeks, such as FCC reform, DTV transition, networks’ election night coverage, broadband deployment. But it also includes: (1) Review of federal funding needed for CPB, including “in-depth examination of the estimated transition costs of the public broadcasters for converting from analog to digital television.” (2) Cybercrime prevention and critical infrastructure protection activities of various agencies, including FCC. (3) Wireless privacy and wiretapping issues, including examination of law enforcement’s needs under Communications Assistance for Law Enforcement Act (CALEA). (4) Violent content in media. (5) State of high-tech industry, including examination of causes of “economic malaise affecting the e-commerce industry. (6) FCC’s broadcast ownership rules and whether they comport with congressional intent. (7) Copyright rules online. (7) Spectrum management and other wireless policies such as spectrum cap. (8) Educational technology programs. Agenda said Committee planned to find “best way to combine the many differing and competing programs into a single funding mechanism.” (9) Phone calling rates for calling cards and in hotels. (10) Efforts of other countries to comply with their trade obligations, particularly in regard to telecom agreements, on which U.S. Trade Representative will release assessment March 31. Meanwhile, Tauzin and ranking Democrat Dingell (Mich.) submitted a budget request giving the Republican majority two- thirds of the Committee’s funds and staff, an arrangement Dingell called “a significant improvement” from the previous session.
FCC asked for nominations by March 16 for Universal Service Administrative Company (USAC) board member who would represent low-income consumers. USAC administers universal service programs -- Sheryl Todd, 202-418-7400.
BellSouth asked FCC to reconsider portion of its building access order that lets building owners require relocation of network demarcation points without getting approval of subscribers. BellSouth said Commission, in requiring telcos to comply with building owner requests for relocation, “appears not to have considered whether it had the authority to allow nonregulated third party nonsubscribers to initiate service affecting network reconfiguration at the expense of [telecom] providers… and their actual service subscribers.” In Feb. 12 petition, BellSouth said carriers shouldn’t be required to comply with request by building owners for relocation of demarcation points “unless the request is accompanied by the consent of all service subscribers” in building. (WT Doc. 99-217, CC Docs. 96- 98,88-57)
FCC gave regulators in 4 states conditional approval to institute 1,000-number pooling trials and rationing to ease telephone number shortages. Common Carrier Bureau said La. PSC, Md. PSC, Mass. Dept. of Telecom & Energy and N.J. Board of Public Utilities could implement such trials but, at first, N.J. could do so only in 201 (Jersey City) area. FCC gave N.J. authority to institute pooling in 732 (Freehold) and 973 (Newark) areas only after it implemented new area codes to relieve them. FCC said 732 and 973 didn’t have enough numbers to last even one year and, even with pooling, there wouldn’t be enough NXX codes to fulfill needs of some carriers. NXX is what traditionally is considered first 3 digits of local phone number -- in other words, 3 digits that come after area code.
Despite increasing competition from DBS providers and cable overbuilders, cable operators boosted their average monthly rates 5.8% in year ending July 1, 2000, according to latest annual price survey by FCC. That increase, which was identical for both monopoly cable operators and ones facing effective competition in their markets, exceeds respective 4.5% and 5.2% boosts by 2 groups of cable systems in Commission’s 1999 price report. It also exceeds nation’s general inflation rate of 3.7% for that period by wide margin, as well as 4.7% cable inflation rate calculated by U.S. Bureau of Labor Statistics for same period. But latest increase still is less than that in agency’s 1997 and 1998 price reports.
Center for Public Integrity has raised questions about FCC Chmn. Powell’s having possible conflict of interest. In article running on its Web site, CPI says Powell worked on GTE interconnection issues as attorney for O'Melveny & Myers but didn’t seek ethics review upon joining agency. Code of Federal Regulations requires new employees to seek guidance from agency ethics officers if there has been questionable contact within past year. FCC spokesman said Powell became commissioner in late 1997, 11 months after having worked on GTE case, and during that one- month overlap there were no issues before FCC that raised possible conflict with GTE. Powell was chief of staff at Dept. of Justice’s Antitrust Div. in 11 months before joining FCC. At law firm, Powell’s work for GTE consisted of being on team that worked on company’s interconnection arbitrations.
Original C-block bidder Airadigm is awaiting answer to petition for reinstatement of its PCS licenses, which FCC cancelled after carrier missed payment after entering bankruptcy in July 1999. Petition still is pending before agency nearly one month from oral argument before U.S. Appeals Court, D.C., March 15 in litigation involving NextWave, bankrupt C-block bidder that also had its licenses cancelled for nonpayment. Airadigm has pointed out that only similarity between it and NextWave is that both are C-block bidders that entered Chapter 11 protection and missed installment payment for licenses. Because of disparities such as fact that Airadigm is offering service and NextWave isn’t, question is whether 2 carriers potentially could be treated differently by Commission. Proceeding raises complex web of legal issues for FCC, making outcome uncertain, industry observers said. At press time, item on Airadigm petition wasn’t yet circulating on 8th floor. Meanwhile, group of large carriers asked Commission to put off Airadigm decision longer, citing how circumstances had changed since NextWave litigation began.
USTA opposed challenges filed by AT&T and WorldCom to FCC’s decision to give BellSouth pricing flexibility. In Feb. 13 filing with FCC, USTA said U.S. Appeals Court, D.C., recently “put a stop to [AT&T’s and WorldCom’s] relentless self-serving attacks” on Commission’s pricing flexibility rules by upholding agency’s rules against challenge by WorldCom (CD Feb 5 p2). FCC “should be applauded for implementing a policy that relies on market forces rather than regulation,” USTA said. Assn. disagreed in particular with WorldCom claim that it was incorrect of BellSouth to include packet-based data services in its petition because such services weren’t subject to pricing flexibility. USTA said rules allowed pricing flexibility for new packet-based services, not just packet-switched access services that already existed at time price cap rules were adopted. However, Assn. of Communications Enterprises (ASCENT) said BellSouth didn’t satisfy FCC’s requirements for pricing flexibility, yet agency gave company “broad-reaching” relief. ASCENT complained that “despite the lack of specificity in BellSouth’s revenue data,” FCC staff “accepted BellSouth’s summary revenue figures and bare assertions as conclusory evidence that the incumbent LEC faces sufficient competition.”
CableLabs, seeking to influence regulatory debate over anticopying encryption technology for digital cable set-top boxes, urged FCC Chmn. Powell to stay course on issue and continue allowing cable industry to impose copy protection requirements on set-top manufacturers. In 3-page letter to Powell last week, CableLabs Pres. Richard Green argued that, without such copy protection capability in cable boxes, “content providers would likely withhold high-quality digital content from cable operators.” He also contended that content providers might favor such cable rivals as DBS providers, “who are not encumbered by the FCC’s separate security requirement and therefore can impose copy protection and other requirements on their receiver manufacturers without being subject to FCC review.” To buttress latter point, Green cited recent story in Communications Daily that reported on agreement between DirecTV and satellite set-top makers to downgrade HDTV signals to ease content owners’ fears of unauthorized program copying. He said FCC “made the correct call” in its Sept. 18 declaratory ruling that cable copy protection requirements were consistent with Commission’s navigation device rules. Such recent developments as DirecTV deal, he said, “demonstrate the wisdom of the Commission’s decision to abstain from involvement in copy protection matters which could have significant ramifications in the competitive marketplace.” Green also stressed that CableLabs’ PHILA (POD-Host Interface License Agreement) requires only that digital cable set-tops have capability to protect digital content -- it doesn’t force cable operators actually to use copy control mechanisms. “The cable industry strongly supports customers’ desires to record programs for various purposes including time-shifting,” he wrote. “However, in the digital world, copies are technically perfect and can be transmitted instantly around the world without restriction. Therefore, a copyright holder must have the technical capability available to ensure that digital copies are made and used responsibly.”
Vt. Public Service Board (PSB) issued revised pole attachment rules that essentially reflected FCC formula for all certified cable and telecom providers. Revised rules require pole-owning utility (POU) to establish single pole rental rate for all attaching entities, including cable and CLECs. That’s in contrast to many other states where surcharge is levied on telecom providers, said attorney Paul Glist, who represented New England Cable Assn. before PSB. In deciding not to adopt 2nd less favorable rate formula for telecom providers, board followed example of Cal., only other state to do so, he said. New rules also make major improvements in area of “make-ready” (work necessary to make pole available for attachment of additional facilities). They bar POUs from denying access based on insufficient capacity where make-ready can be used to increase or create additional capacity. Other changes include: (1) Rules permit attaching parties to use outside contractors to increase capacity on POU plant when utility can’t. (2) Fixed time limits are set for completion of make-ready. (3) Utility is obliged to seek least-cost alternatives such as pole top extenders while executing its own make-ready. (4) No additional application or payment is required for attaching entity such as cable operator to overlash (add fiber, for example) its plant to existing attachments and only one day’s notice to utility is required. State legislature, which is doing economic impact study, must approve new rules, Glist said.