Rural telephony is ripe for investment as regulatory reform, consolidation and divestiture of rural exchanges by Bell companies change way telephone service is offered in small communities, panelists told representatives of investment companies attending conference in N.Y.C. sponsored by Legg Mason. “This a good time for you to come in,” NARUC Pres. Bob Rowe said: “There is tremendous growth. Rural America awaits your participation.” Panelists at all-day conference represented telcos, regulators, financial investors.
FCC Comr. Ness has offered to help ease transition of new commissioner after replacement is named, she confirmed, but hasn’t set date for departure. Ness is continuing at Commission on recess appointment that ends when replacement is finalized. Ness told us she hasn’t decided exactly when she would leave, but is willing to help because “I care very much about this agency.” Despite pressure from some committee Democrats, Senate Commerce Committee Chmn. McCain (R-Ariz.) has blocked Ness’s reappointment on grounds that he believes commissioners should have only one term.
FCC denied petition by Midway Bcstg. seeking reconsideration of its June 2000 order admonishing Black Media Works, licensee of noncommercial station WJFP(FM) Ft. Pierce, Fla., for broadcasting ads in violation of Commission rules. Midway said admonishment was inadequate sanction. FCC said Midway didn’t provide adequate reasons why imposition of more severe form of initial punishment would be required to ensure WJFP’s prospective rule compliance. While parties could draw Commission’s scrutiny and investigative efforts to licensee’s conduct, it said, agency itself had broad discretion in determining ultimate choice of remedies and sanctions that were appropriate.
FCC said Time Warner was subject to effective competition in Lima, O., and more than 30 surrounding franchise areas, rejecting opposition from Watch TV Co. (WTC) which provides competing multichannel video service, and cities of Piqua, Sidney and St. Marys. Granting TW petition, Commission said company had provided evidence that: (1) Competitive service was provided by LEC or its affiliate. WTC hasn’t disputed that it’s wholly owned subsidiary of Benton Ridge Telephone Co. (2) WTC provides comparable programming. Commission said neither Communications Act nor its rules mandated station-specific comparability to extent argued by cities, and agency was satisfied WTC’s channel lineup met its programming comparability criterion. TW had asked Commission to dismiss its requests relating to Piqua and Sidney saying it was unable to confirm whether WTC’s service was being actively marketed in those communities.
FCC denied applications for review of International Bureau’s authorization to General Communications Inc. (GCI) to land and operate Alaska United Cable System. Bureau’s Telecom Div. authorized Alaska United as non-common carrier undersea fiber cable system, spanning Pacific Northwest of U.S. and Alaska. ATU- Long Distance, TelAlaska/ASTAC Long Distance and Alaska Network Systems each had asked FCC to review order in Dec. 1997. Challengers contended GCI should have been required to operate cable on common carrier basis to preclude competitive harm. FCC stood by division’s decision, pointing out availability of other telecom facilities along route, including Northstar Cable System. Commission adopted order Feb. 1 and released it last week. Comr. Furchtgott-Roth issued separate statement that dissented in part, citing his “longstanding view” that FCC lacked authority over undersea cable landing licenses. He has said he doesn’t believe President can grant authority to FCC to approve undersea cable systems under Cable Landing License Act. Apart from that objection, Furchtgott-Roth said “perhaps the most troubling aspect of today’s decision is that it took 3 years for the Commission to reach it.” He apologized to companies, saying they deserved better treatment. “Parties are entitled to the expectation that their Commission business will be resolved in a prompt manner,” he wrote. “By any measure, today’s order fails that test.”
Rep. Cubin (R-Wyo.) reintroduced bill (HR-496) to deregulate small telcos serving fewer than 2% of nation’s access lines. Similar bill (HR-3850) passed House last year and is being backed in Senate this year by Sen. Burns (R-Mont.). Cubin said FCC has promised to address question of whether its regulations are too cumbersome for small telcos, but “the agency’s time frame on issuing those proposed rules has changed like the Wyoming wind. It’s time those obligations are met, and this legislation would solidify what the FCC has promised to do for a long time.” She said she has “bent over backwards to accommodate many of the initial concerns that some members had with this legislation and have incorporated a majority of their helpful suggestions.” Cubin said she looks forward to FCC’s “thoughtful suggestions as well as their own internal changes.” Initial co-sponsors for her bill are Reps. Gordon, Pickering, Barrett. House Commerce Committee Chmn. Tauzin (R-La.) expressed support for Cubin’s efforts, saying she’s dedicated to “establishing regulatory common sense for small and mid-size telecommunications companies.” He said bill is “entirely consistent” with his own efforts to restructure FCC.
Military Network is planned for end of year by Jeff Davidson (ex-Gannett), Carol Lafever (ex-ABC) and Tom McKnight (ex-FCC). Davidson is chmn., McKnight CEO, Ed Feuerherd chief program officer. Other principals: Robert Wussler, vice chmn.; Larry Meli; James Webb, former Secy. of Navy; Bruce Crockett, former Comsat CEO; Diane Powell, ex-NBC. Group bought assets of Military Channel, which ceased operations.
Group of 37 economists told FCC it shouldn’t directly create secondary markets for spectrum but should put in place more flexible rules that would enable such markets to emerge. In response to notice of proposed rulemaking on how FCC could pave way for secondary market for wireless spectrum, economists said wireless licensees should be subject to restrictions only on out- of-band emissions and anticompetitive concentration. “With few exceptions, spectrum continues to be offered to the market only as allocated and no price can be offered to reallocate it from the officially designated use,” group wrote. Group included Thomas Hazlett of American Enterprise Institute, Stanford U. Prof. Roger Noll, former member of White House Council of Economic Advisers, and Martin Baily of Institute for International Economics. Filing encouraged FCC to free up spectrum rules “much farther than the modest measures proposed in the notice.”
Indecency complaint against KLOU(FM) St. Louis “deserves more than a dismissal” because of lack of adequate information, FCC Comr. Tristani said in statement on Enforcement Bureau action. Bureau, in Feb. 7 letter to complainant, said “reference to excretory organs alone is not sufficient to find material indecent.”
“ALTS is going on the offensive,” Pres. John Windhausen announced at Thurs. news conference, as he and others in CLEC industry began campaign for tougher enforcement of rules on local phone competition. ALTS members said they would ask Congress to consider strict penalties for Bell companies that failed to comply with Telecom Act’s market-opening provisions, or even splitting Bells into separate wholesale and retail units.