FCC Chmn. Powell will use his first open meeting Feb. 22 for presentations by various bureaus and there won’t be any votes. FCC spokesman said new format was planned only for this meeting, although Powell has left door open for doing it again in future. Agency said meeting would consist of 2 panel discussions in which bureau chiefs would make presentations on current regulatory issues and internal management procedures. Each panel will be followed by questions and dialogue with commissioners, spokesman said. Powell said event will enable commissioners to “take stock of how well we are organized to be as responsive as possible.” News conference will be held at end of meeting, he said. FCC Comr. Furchtgott-Roth said special meeting format was good “demarcation point” between old and new Commissions. Agency still will issue “sunshine notice” because public notice is needed any time 4 commissioners meet, spokesman said.
FCC Comr. Furchtgott-Roth plans to work for think tank for several months after he leaves FCC, giving him time to write book and “look around the private sector” for new job, he told reporters Tues. at his monthly breakfast briefing. However, he said he probably would remain at FCC for “many months” before President Bush appointed replacement. Asked what kind of book he will write, he said it would be “telecommunications-related and based on my experience here.” He predicted that Chmn. Powell would be “outstanding chairman” who would lead “a more restrained Commission, more tied to the law.” Furchtgott-Roth said he expected Powell to concentrate on management issues, giving industry more “predictability” and speeding decisions on license applications and other petitions. However, he said he didn’t know whether Powell would go as far as setting specific time frame for license reviews. On other topics, he said he had been assured that agency would gear up soon to resume work on reciprocal compensation. “The last piece of paper” he received involving reciprocal compensation language was in early Dec., he said. On wireless issues teed up at agency, Furchtgott-Roth said he expected it would address license transfers connected to VoiceStream, Powertel and Deutsche Telekom merger “shortly.” Applications were filed in Oct. and “we're over 90 days now,” he said. “It should have been taken care of.” Asked about concerns raised by some over designated entities backed by larger carriers in recently completed C- and F-block auction, Furchtgott-Roth said Commission had “fact-specific rules” on ownership. Agency policy allows challenges to ownership provisions after long forms are filed following close of auction. Difficulty in allowing such challenges before start of auction is that pool of bidders was substantial, making certification of such ownership issues ahead of bidding time-consuming, he said.
Motorola executives recently lobbied FCC Chmn. Powell and Comrs. Ness and Furchtgott-Roth to get rid of Commission’s Jan. 1, 2005, deadline for cable operators to stop offering integrated cable set-top boxes, according to ex parte filings. Meeting with Powell, Ness, Furchtgott-Roth and their cable advisers Jan. 29, Motorola officials argued that deadline should be eliminated so consumers could “continue to have the option of leasing lower cost equipment” from MSOs. Noting that ban was enacted when it appeared that integrated set-top boxes (STBs) couldn’t be sold at retail, they also contended that there now were “multiple business models, including Motorola’s new line of retail-only STBs with embedded security, advanced functionality and POD slots.” Motorola officials also pressed Powell, Ness and Furchtgott-Roth not to move up 2005 deadline, arguing that “would have no positive effect on retail sale of STBs and would negatively impact consumers.” Despite CE retailers’ claims of incomplete cable set- top standards and unfair competition, company officials said “Open Cable specs are sufficient to allow competitors to offer full function STBs.” They also said retailers’ complaints “are motivated by their desire for a larger, monthly revenue stream.”
For 2nd time in week, FCC Comr. Tristani criticized Enforcement Bureau for dismissing indecency complaint. Latest complaint involved language on WRLR(FM) Hueytown, Ala., which Bureau said was “certainly offensive, but not indecent.” Tristani said complaint raised “prima facie case for indecency,” as well as constituting personal attack. “It is difficult to discern what more specific allegations are necessary to state a prima facie violation under the statute,” she said. Earlier case involved KLOU(FM) St. Louis (CD Feb 9 p7).
FCC began process that could lead to revoking licenses of WSTX(AM/FM) Christiansted, Virgin Islands, for operating with unauthorized antennas and improper power levels. Commission ordered administrative law judge evidentiary hearing on issue, but date hasn’t been set. In unrelated action, FCC proposed to fine Citicasters $25,000 for taking control of WBTJ(FM) Hubbard, O., without prior Commission approval.
FCC denied petition by Operator Communications (Oncor) for forbearance of rule requiring that contributions to federal universal service fund be based on carrier revenue from prior year. Oncor contended that basing contributions on prior-year revenue harmed carriers with declining revenue. It asked FCC to forbear from assessing revenues for years 1998-2000 and then reassess contribution based on actual revenue for those years. Commission said requested action would give unfair advantage to carriers with declining revenue. FCC Comr. Furchtgott-Roth issued statement agreeing with FCC’s denial but emphasizing that problem raised by Oncor was serious: “Because carriers contribute to the universal service fund based on the prior year’s revenues, those carriers whose revenues have declined find themselves paying a higher percentage of their current revenues… than do carriers with stable or increasing revenues.” He said end-user surcharges could be “promising solution.”
Three-judge panel of Cal. Court of Appeals ruled that nothing in federal law or FCC policy preempted state courts from awarding damages in false advertising lawsuit against 2 Southern Cal. cellular providers. Appeals Court dismissed claims by cellular carrier industry that federal law barring state rate regulation of wireless services also denied state courts jurisdiction over anything that might directly affect wireless rates, such as civil damage awards. Ruling grew out of 1998 lawsuit in Cal. Superior Court, L.A., (Marcia Spielhotz et al. v. Los Angeles Cellular/AT&T Wireless) in which plaintiffs accused cellular carriers of false advertising and breach of contract because they claimed to have seamless coverage across Southern Cal. but failed to disclose dead zones within their coverage area where phones wouldn’t work. Lower court dismissed case on ground it lacked jurisdiction to award damages. Appeals Court Judges Walter Croskey, Joan Klein and Pattie Kitching in Case B-131655 directed lower court to vacate its order disclaiming jurisdiction and to schedule case for hearing. Appeals Court addressed only where case should be heard, not merits. Current FCC policy says there’s no blanket preemption in federal law to preclude state court damage awards against cellular companies in lawsuits over consumer protection, misrepresentation and contracts, but facts of each individual case would determine whether state damage awards were permitted.
Planned review of Canadian telecom regulator Canadian Radio- TV & Telecom Commission (CRTC) will examine whether parts of media and telecom industries can be deregulated and how regulatory process can be streamlined, senior govt. official said. “There used to be neat, tidy compartments between computers and broadcasting and telecommunications. That’s no longer the case. It’s time to take a look at this,” he said.
CTIA Pres. Thomas Wheeler said Tues. that wireless carriers were eyeing 1.7 GHz spectrum occupied by military users as “first choice” for obtaining more spectrum for 3rd-generation services. He and former FCC Chmn. Reed Hundt, now senior adviser with McKinsey & Co., spoke at New America Foundation lunch on wireless spectrum shortage. Turning to 1755-1850 MHz band would add to “global harmonization” of wireless bands used beyond U.S., Wheeler said, and 2500-2690 MHz band occupied by Multichannel Multipoint Distribution Service operators would be “2nd choice.” FCC and NTIA are looking at both bands as potential source of additional spectrum for next-generation services such as 3G.
Promotions at Space Systems/Loral: Patrick DeWitt advanced to exec. vp; Christopher Hoeber moves up to senior vp-business development & strategy; Neil Barberis promoted to senior vp- spacecraft programs; Robert Owiesny advanced to senior vp- engineering and manufacturing; Ronald Haley moves up to senior vp-finance and administration… Joshua Paul, ex-Cowan, Leibowitz & Latman, named partner, Morgan, Lewis & Bockius… Vaikunth Gupta, Wisor, joins FCC’s Packet Switching Data Reporting and Analysis Focus Group… Cynthia Miller promoted to vp-human resources and administration, Showtime Networks… Changes at Cox: Lamis Hossain, ex-Coca-Cola, named CIMedia in-house counsel; Glenn McLaren advanced to city site mgr. of San Antonio Web site sa360.com… Susan Fox, ex-FCC, named vp-govt. relations, Disney… Changes at Harmonic: Michael Moone, ex-Cisco, appointed COO; Yaron Simler moves up to pres.-Convergent Systems Div… James McLoughlin, ex-HBO, named vp-affiliate sales, WorldGate… Gary LeJeune, ex-Equant, appointed vp-sales, NTT America… Marc Smith, ex-Phillips Business Information, named senior dir.- communications, NCTA… Rob Glaser, chmn.-CEO of RealNetworks, will keynote April 23 TV lunch during NAB convention in Las Vegas at which ABC Nightline host Ted Koppel will be inducted into Bcstg. Hall of Fame, and retiring MSTV Pres. Margita White will receive NAB Spirit of Bcstg. Award.