Dept. of Justice and FBI submitted petition to FCC outlining conditions related to national security in pending merger of VoiceStream, Powertel and Germany’s Deutsche Telekom (DT). Companies earlier this month disclosed in SEC filing that they had entered into agreement with DoJ and FBI on national security and law enforcement issues. Companies and federal law enforcers said at time they jointly had asked FCC to defer granting applications for merger approval until after agreement was reached. FCC filing said agreement paid “particular attention” to provisions that would limit control or influence of German govt. through exercise of its control of DT as direct or indirect shareholder. Scrutiny is focused on “day-to-day management” of DT in way that would interfere with carrier’s obligations under agreement. German govt. now has 60% stake in carrier, which will be diluted to 45% after Powertel and VoiceStream deals close. Agreement also covers future U.S. subsidiaries that DT acquires. Under agreement, carrier will make available in U.S. information such as stored domestic communications, electronic communications, subscriber data, billing records, transactional and call-associated data. DoJ and FBI said they had no objections to FCC’s granting proposed license transfers.
FCC ordered Intelsat to disclose confidential information about operations. Intelsat didn’t want to release information in draft Shareholders Agreement and Bylaws sought by outside sources. PanAmSat had filed petition reminding FCC that information Intelsat attempted to protect was provided routinely by other companies. Commission said information was needed to be made public to help others participate in rulemaking. FCC also extended deadline for comments to Feb. 22 and reply comments March 12.
MPAA supports efforts by FCC to impose nonduplication, syndicated exclusivity and sports blackout rules under Satellite Home Viewer Improvement Act (SHVIA). In Mon. filing with Commission, MPAA said protecting parties rights to engage in contract negotiations with knowledge that exclusive agreements “would not be abrogated by importation of distant signals is fundamental” whether cable systems or satellite carriers retransmit distant broadcast signals. EchoStar “seeks to delay and erode obligations” placed on it by new roles by asking Commission to increase 120-day transition period to 1-year to implement program, MPAA said. MPAA said EchoStar has had more than enough time comply with new rules: “EchoStar now acts as if like Rip Van Winkle it has awakened to vastly changed landscape.”
FCC asked for comments by Feb. 13 on petitions by AT&T and WorldCom for review of Dec. 15 Common Carrier Bureau decision giving BellSouth pricing flexibility for special access and dedicated transport (CC Doc. 01-22). Replies are due Feb. 23.
FCC released public notice on winning bidders in PCS auction of 422 C- and F-block licenses, setting Feb. 12 deadline for payments to be made. Auction that wrapped up Fri. raised $16.8 billion. Winning bidders also have until Feb. 12 to submit long- form license applications. Notice also sets same date for companies to file petitions to deny any licenses.
FCC gave U.S. international carriers 90 days to come into compliance with international licensing requirements if they weren’t already complying. After that, International Bureau will refer violators to Enforcement Bureau for possible action. Agency said Tues. it was concerned that some carriers and operators were providing unauthorized international service or operating unauthorized telecom facilities (DA 01-188). Ninety-day period begins when FCC notice is published in Federal Register.
Not surprisingly, AT&T posted significant loss Mon. as it continued to face falling prices in long distance business and dealt with expenses in its broadband unit involving acquisition of MediaOne and impact of its investment in Excite@Home. Despite sharp decline, AT&T’s results were within analysts’ expectations for beleaguered company that’s in midst of restructuring itself. Bright spot was 39% revenue growth in company’s wireless unit, which it plans to spin off this year.
Cable operator serving fewer than 677,000 subscribers will meet definition of small cable operator, FCC said in new subscriber count for defining small operator. Commission said it had determined that there were 67.7 million cable subscribers in U.S., based on most reliable source publicly available. Commission’s rules define small cable operator as one that directly or through affiliate serves less than one percent of all subscribers in U.S. and isn’t affiliated with any entity or entities whose gross annual revenues exceed $250 million. Small cable operator is eligible for rate deregulation.
As use of FCC’s Part 15 unlicensed spectrum, once domain mostly of items such as children’s toys, increases, Commission is mulling requests to either allow new systems to operate at 2.4 GHz or to modify requirements to reduce interference risk. Sources said FCC’s Office of Engineering & Technology was weighing possibility of holding industry forum to address how existing requirements addressed new usage trends. Meanwhile, large investors in wireless home networking technologies -- ranging from 3Com and Intel to Cisco and Texas Instruments -- have lined up at FCC either seeking permission for new systems to operate or changes to ensure existing technologies can continue to co-exist. Debates have centered on potential for interference between home RF devices and 802.11b operations -- Wi-Fi (wireless fidelity) local area networks (LANs).
FCC must-carry rules are filled with “legal and factual errors,” EchoStar said in letter signed by Vp-Gen. Counsel David Moskowitz. EchoStar joined rival DirecTV and Satellite Bcstg. & Communications Assn. in challenging constitutionality of must- carry rules in federal lawsuit. Under FCC rules, DBS companies must carry all stations in each market they serve. Satellite companies say those rules eat up valuable capacity and constrain their business. Moskowitz said Commission made “flatly mistaken observation” that Fla. federal court found Satellite Home Viewer Act that mandated must-carry rules to be constitutional. The court “never made such a finding and indeed it could not have, as it concerned a complaint relating to distant, not local signals.” EchoStar also criticized FCC for relying on “unsubstantiated comments” from NAB “without any empirical or other support” and treating them as facts. Finally, EchoStar said, satellite carriers in general, and EchoStar in particular, had devoted substantial resources to ensuring that all local TV broadcast signals carried on satellite systems enjoy superior signal quality.