FCC asked for comments on separate requests to stop providing services filed by WorldCom and OpTel. Agency said comments are due March 2 on WorldCom request to discontinue its Metromedia, MFS Intelenet, Online and Travel card services. WorldCom said it doesn’t have any customers enrolled in those services. Comments are due Feb. 22 on OpTel’s request to stop providing telephone operations in Ariz., Cal., Colo., Fla. and Ind. because it’s in bankruptcy reorganization.
Several wireless carriers told FCC that any steps to pave way toward development of secondary wireless market should rely on simple leasing rules, not existing limits such as spectrum cap restrictions. They strongly urged agency not to apply spectrum cap or unjust enrichment rules to lease deals. One theme among smaller carriers is that leasing arrangements can give them entree to truly compete in auctions because they could use proceeds from transactions to build out markets while retaining license ownership. Commenters on notice of proposed rulemaking (NPRM) on secondary wireless markets differed on details, including how regulatory requirements of original licensee should apply to lessees.
Mark Crosby, longtime pres. of Industrial Telecom Assn., is stepping down to head Access Spectrum, separate guardband bidding unit set up last year by ITA, Motorola, others. He also will remain senior policy adviser to ITA. ITA spokesman said move was “strategic shift” designed to “make sure Access Spectrum succeeds as a healthy source of frequency coordination for ITA.” ITA “already has been molded,” allowing Crosby to concentrate on unit that as band manager paid $69 million for 19 licenses in guardband auction, spokesman said. Crosby, who joined ITA’s predecessor Special Industrial Radio Service Assn. as intern 31 years ago, has been pres. for 26 years. He will be succeeded by ITA Exec. Dir. Laura Smith, ex-FCC staffer who moved to ITA in 1998. Smith worked at FCC for 8 years in Mass Media and Wireless bureaus.
FCC continues to work with frequency coordinators on recently implemented universal licensing system (ULS) under which coordinators have complained they haven’t been able to file applications electronically. Some land mobile radio service licensees have contended system implementation issues have caused delays for frequency coordinators and that more rigorous beta testing could have avoided problems. “Both groups might have to change their program a little bit to make this thing work,” one FCC official said. “We're trying to work with the frequency coordinators.” Assn. of Public-Safety Communications Officials (APCO) officials said no public certified frequency coordinator had been able to submit application electronically since ULS system went online last fall (CD Feb 6 p3). APCO also is concerned that large number of applications are returned to filers for simple errors. FCC official said agency had discussions throughout last year with frequency coordinators, including timing of phased-in approach for starting ULS for land mobile applications. Second phase of ULS began operating in Oct. for public certified frequency coordinators, followed by industrial and business frequency coordinators in Dec. When asked earlier in year if deployment targets gave coordinators enough time to modify their systems, FCC official said, “there wasn’t any resistance to the time frames that we established.” On testing issue, she said: “We were for testing but the coordinators weren’t ready to send us any files.” First phase of ULS deployment of land mobile licensees involved Nextel, so one class of licensees already was filing earlier in year without problems, official said. “Our goal is to have everything on data entered within 5 business days of receipt. Now we are working on 10 days,” she acknowledged. Many of frequency coordinators have been successful in testing in last few weeks as they approach deadline for making electronic filing within 6 months of ULS deployment date for particular group of licensees, official said. FCC has asked coordinators if they need extension of this 6-month date and hadn’t received word that more time was needed, she said. On applications returned for simple errors, for example, agency is trying to work with companies “to efficiently process these transactions during the transition period.” Applications returned as result of minor errors, such as missing zip codes, emerged during transition with other licensee groups and were worked out, official said. In regularly scheduled meetings with frequency coordinators, coordinating bodies have aired concerns and discussed with agency how to address problems, FCC official said.
FCC Wireless Bureau is seeking comment on waiver request from 800 MHz specialized mobile radio (SMR) service licensee who wants to lease air time capacity to Nextel in L.A. Licensee James Kay is seeking waiver to enter into proposed air time retransmission capacity agreement with Nextel of Cal. Nextel, under agreement, would have access to capacity on Kay’s L.A. and Orange County (Cal.) SMR stations licensed on certain 800 MHz business and land transportation channels. Kay told FCC he would retain licenses, making available to Nextel all air time capacity that was available under licenses. Nextel, in turn, would agree to comply with FCC policies that govern licenses. Commission has been contemplating such leasing arrangements in proposed rulemaking on how to foster secondary market for wireless spectrum. Bureau is accepting comments to Feb. 27, with replies March 9.
FCC can help settle Ka-band spectrum debate by ruling against VisionStar-EchoStar license transfer, rivals TRW and Pegasus said in petitions filed with Commission last week. Pegasus Vp John Hane said proposal “violated trafficking laws” that prohibit satellite companies from selling licenses before launching satellites and operating system. Pegasus and TRW want VisionStar orbital slot made available for reassignment in 2nd Ka-band processing round. VisionStar slot at 113 degrees W is next to slots owned by EchoStar. Hane said: “You're not supposed to sell a satellite license you received for free for profit If the FCC denies this petition along with the Motorola-Teledesic transfer, the 2nd round allocation dispute can be resolved.” CAI Wireless, DirectCom, Hughes, Motorola, PanAmSat and WildBlue are among companies seeking Ka-band slots in 2nd round (CD Feb 1 p2).
AT&T is seeking to use FCC’s recent approval of AOL takeover of Time Warner to aid company’s crusade against govt.’s cable ownership limits and attribution rules. In letter to U.S. Appeals Court, D.C., which is reviewing ownership limits, AT&T argued that FCC’s approval buttressed company’s claim that Commission’s cable attribution rules were “arbitrary, capricious and unlawful” because they applied “to ownership interests that have merely the potential to lead to influence, rather than only to those interests that actually confer influence or control over programming decisions of a third party.” AT&T said FCC, in okaying AOL-Time Warner deal, concluded that AOL’s nonvoting interest in DirecTV was not attributable and thus did not have to be shed by AOL, after applying “the very standard that it had disavowed” in AT&T’s case. AT&T declared that its minority, nonvoting stakes in Time Warner Entertainment (TWE) and other MSOs, like AOL’s stake in DirecTV, shouldn’t be attributed to it because it had no influence or control over their programming decisions. Because of FCC’s interpretation of attribution rules, AT&T must shed its stake in either TWE or in Liberty Media and other programmers because it otherwise would exceed cable ownership cap.
AOL Time Warner sent letter to FCC recently certifying that merged company “has not entered into any agreement with AT&T” that gives any of former’s ISPs exclusive access to AT&T cable systems or that affects AT&T’s ability to offer “any rates, terms or conditions of access” to independent ISPs. Commission required certification as part of its merger approval.
FCC needs to harmonize intercarrier compensation and develop coherent national approach to wireless spectrum, FCC Chmn. Powell said in CNBC interview Fri. He compared local telcos with “mother cow” that all other telecom firms connect to for last mile, but said those connecting all had different compensation arrangements with local telcos. When asked whether harmonization would happen on case by case or in overall proceeding, Powell said it was “regrettable” that intercarrier compensation had been on case-by- case basis, which he said was too slow for “Internet time.” FCC should “try to pull up to 30,000 feet and see how to approach it across the board.” Powell said there’s “critical need” for spectrum for things such as 3G, but “no single point of harmonization” for spectrum. FCC must try to recoup as much spectrum as it can, he said, but incumbents also have rights. It will be “big challenge,” Powell said. He said LEC entry into long distance wouldn’t necessarily be easier, but Commission would be “faithful to congressional intent” that access should be easier. That doesn’t mean all entry will be approved, Powell said, but FCC shouldn’t block entry as “defensive measure.” He clarified earlier comments about lack of digital divide, saying it may be natural for different consumers to have different products, as they do different autos. He said early adopters are important to help drive down cost and “shake out the bugs,” and if govt. requires all segments of society to get new products at same time they “may not get built at all.”
Deutsche Telekom (DT) disputed reports that timeline of proposed mergers with Powertel and VoiceStream had slipped. Spokesman in Germany said company didn’t set midyear closing target until it filed proxy statement with SEC Fri. Filing said wireless merger wasn’t expected to close until “at least” May 31. Some analysts had expected wireless transaction to close in April or even earlier after remaining regulatory hurdles were cleared, including FCC approval. Germany’s DT made offer somewhat sweeter with new provision that would increase shares VoiceStream stockholders would own by 0.75%, raising number of shares that would be exchanged for DT stock.