Request by Verizon Wireless last week that FCC postpone 700 MHz auction received broader wireless industry backing Wed., with submission of comments by Cellular Telecommunications & Internet Assn. (CTIA) supporting postponement. CTIA reiterated arguments made by Verizon that delay until Sept. 6 was warranted, in part to allow enough separation between current PCS auction and start of 700 MHz bidding. CTIA also cited factors such as additional time needed by bidders to prepare for first FCC auction that would use combinatorial bidding. “Conducting the auction under the existing uncertainty would devalue the 700 MHz spectrum and increase the likelihood that the American public would not realize the full economic and public benefits of a 700 MHz auction,” CTIA said.
“We need to move the process of Sec. 271 into high gear,” new House Commerce Committee Chmn. Tauzin (R-La.) told us in Wed. interview on his priorities for House session that begins Jan. 30. On none of his core issues was Tauzin ready to propose specific legislation. He said panel would explore several options for getting Bell companies into long distance, depending on FCC cooperation. Tauzin also said he still was unsure how much legislation would be required to reform FCC and how much new agency Chmn. Powell could accomplish on his own. He said he would ask Committee “literally to do a top-down review of the digital [TV] transition,” which he said was “really off track now.”
As expected, FCC has embarked on reexamination of whether there is continued need for spectrum cap and cellular cross- interest rule for commercial mobile radio service providers. Notice of proposed rulemaking (NPRM) issued late Wed. (CD Jan 23 p1), but approved by FCC last Fri., seeks comment on whether wireless market has changed significantly since last time agency examined issue in 1999, when it decided to keep spectrum limits intact to safeguard competition. Point is to examine whether competition has grown to extent that spectrum restrictions can be lifted or relaxed, NPRM said. Questions in notice included role FCC plays in examining market impact of wireless deals vs. purview of Dept. of Justice.
Interim step toward making rival XM Satellite and Sirius Satellite Radio digital audio radio services (DARS) systems interoperable could be achieved by early next year, although full- scale integration won’t occur for 4-5 years, Sirius CEO David Margolese told us. In interview at C.E. Unterberg, Towbin conference in N.Y.C., he said vehicles would be prewired for DARS reception and device would be installed in trunk to accept either Sirius or XM receiver. Interim step, which moves companies part way toward satisfying FCC mandate that competing DARS service be interoperable, is required under OEM agreements with Audi, Honda, Nissan and Toyota, Margolese said. However, XM spokeswoman said interim step wasn’t part of OEM pacts, but rather was “solution” companies were developing as bridge to integrated product. Full integration will require dual chipset, industry sources said.
FCC issued order Wed. requiring incumbent LECs to make their directory assistance databases accessible to competing directory providers. Agency said it was essential for competitive directory providers to have access to those updated databases. Because ILECs derive their databases from their telephone service order processes, they continue to maintain control over most listings, FCC said. Commission said access must be on nondiscriminatory basis and be available at reasonable rates. CLECs often don’t have resources to provide their own directory assistance so they depend on those alternative providers, FCC said in order. However, Commission said ILECs didn’t have to grant access to national or “nonlocal” directory assistance databases because ILECs didn’t have monopoly control over them. Agency also resolved some outstanding issues relating to access to subscriber information by Internet-based directory publishers. It said Internet publishers should have same nondiscriminatory access and reasonable rates as other directory providers. Commission also concluded that publishers of telephone directories on Internet shouldn’t be restricted in how they displayed or allowed customers to access such data. Like several other orders issued this week, this one was approved on Fri. and included then-FCC Chmn. Kennard’s vote.
Ex-FCC Chief of Staff Kathryn Brown will be honored at reception today (Jan. 25), 4-7 p.m., at Club at Franklin Square, 1300 I St. NW., sponsored by group of FCC staffers -- Joy Howell, 202-418-0505.
FCC Wireless Bureau’s Auctions Financing & Mkt. Analysis Branch denied waiver request by IVIDCO to be deemed eligible to participate in agency’s restructuring plan for 218-219 MHz. Company argued it had pending grace period or waiver request on file at Commission before it missed payment for 218-219 MHz licenses, resulting in automatic cancellation. However, Bureau granted IVIDCO request that it be able to examine grace period requests filed by current and former licensees. In 1999, FCC issued order that modified rules for 218-219 MHz, formerly Interactive Video & Data Service band, and created financial restructuring plan for eligible licensees. Ineligible licensees included those that weren’t current in their installment payments as of March 16, 1998.
FCC ruling on 700 MHz spectrum auction (CD Jan 24 p6) will “demonstrate to shareholders the value of the television spectrum,” Pax TV said. Chmn. Lowell Paxson said new rules would allow market to determine adequate compensation for broadcasters to vacate spectrum early. He said company, which owns 18 TV stations in band, plans to “take a leadership position and set the tone for negotiations with the wireless telecom winners in the upcoming auction in an effort to speed the transition to digital television and monetize the value of our spectrum.”
Spectrum availability and how wireless technology can help bridge digital divide will dominate wireless policy arena this year, CTIA Pres. Thomas Wheeler said at press lunch Tues. He said CTIA was “very hopeful” FCC would address industry concerns on spectrum cap. CTIA has been urging agency to lift 45 MHz cap for all but rural markets, where ceiling is 55 MHz. Wheeler pointed out that in past FCC orders that dealt with cap, newly named Chmn. Powell had questioned why existing ceiling should remain intact. Lifting it would provide “interim relief” while 3rd-generation policy debates continued on whether and how to free additional spectrum for advanced mobile services, he said. Lifting cap “will buy you the 18 months that you need to get to the tough decisions,” he said, referring to 3G. Wheeler stressed prominent role Japan and European countries have taken in wireless Internet, in part by govt. policies that have made spectrum available and issued licenses. “God bless the Clinton Administration for starting the spectrum policy review process,” Wheeler said of 3G. “But they couldn’t bring it to fruition. And it now falls to the Bush Administration to deal with the really hard parts and make decisions.” Wheeler praised NTIA proposal last week on reimbursement for federal agencies that must relocate from existing spectrum (CD Jan 18 p2). NTIA outlined changes on how private sector could reimburse agencies, including possible relocations connected to 3G decisions involving military spectrum. “It might just be the underlying key point so far to be raised in breaking whatever gridlock there might be in creating access to spectrum,” Wheeler said. As for Verizon Wireless’s request to FCC last week that agency delay 700 MHz auction beyond March 6, he said he still was making calls to members on group’s position. (Comments are due Jan. 24). “Their concern is not an illegitimate concern,” Wheeler said of request to push back bidding for at least 2 months but preferably until Sept. 6. “You have to be in a position where you can work out bidding alliances, structures and trading spectrum and all these kinds of things to get you set for the next auction. But you are prohibited, because there’s an ongoing auction, from doing those very things.” In other policy areas, Wheeler said he hoped agency would address outstanding issues such as calling-party-pays and reciprocal compensation and privacy, including CTIA’s Nov. petition that proposed privacy principles covering mobile location-based services. He said he was hopeful FCC would move on privacy issues, although he said there was intra-agency debate on whether it belonged in Common Carrier or Wireless bureaus.
FCC opted against adopting cost-sharing rules, cost caps or recovery guidelines to help clear incumbent analog broadcasters from Ch. 59-69 spectrum set for auction March 6. Such measures, on which agency sought comment last year, are “not necessary or appropriate at this time,” Commission said. Decision, made last week and released Tues., “leaves cost-sharing arrangements to voluntary negotiations among new wireless licensees,” agency said. Commission also left implementation of secondary auction process for band-clearing rights to “private, voluntary efforts.” FCC earlier had sought comment on whether govt. or private sector should oversee secondary auction. Decision expands on rebuttable presumption in earlier Commission action. Initial policy provided that under specified circumstances, voluntary arrangements for incumbents to exit spectrum ahead of Dec. 31, 2006, DTV transition would be in public interest. Presumption applies to agreements between 700 MHz wireless licenses and incumbent broadcasters. Now, FCC has expanded that to 3-way agreements, allowing Ch. 59-69 incumbents to relocate to lower band TV channels, which in turn would be cleared voluntarily by incumbents in lower band. Without providing details, Commission said it provided guidance on interference issues that could arise from proposal to relocate broadcaster to channel below Ch. 59. Agency also adopted changes to streamline review of regulatory requests needed to put private band-clearing agreements into force. Report and order received approval of all commissioners, with exception of Comr. Tristani, who approved in part and dissented in part. In separate statement, Tristani reiterated earlier concerns over rebuttable presumption, saying band-clearing proposals needed case-by-case review. She said her earlier concerns extended to 3-way channel swaps. “Although the Commission’s action purports to facilitate the DTV transition with only a temporary loss of service for today’s viewers of over-the-air television, I fear it will do neither,” she wrote. “Moreover, 3-way swaps may result in loss of service not only for viewers of channels 59-69, but in the core spectrum as well.” In statement that was longer than agency’s news release on order, Tristani said she was concerned about impact on overall DTV transition. “Nothing in today’s decision requires a broadcaster to give up its analog operations in favor of digital-only service,” she said. Instead, broadcaster could operate in analog format on digital channel allotment under 3-way swap. Citing “negligible penetration” of DTV sets, Tristani said that made it likely broadcaster would choose to continue analog operations on its only channel “and ‘free ride’ on the efforts of other broadcasters to complete the digital transition.” She also objected to majority’s treatment of so-called lone-holdouts, or single incumbent broadcaster who refuses to leave spectrum block that otherwise is cleared of UHF operators. She said decision didn’t express view on mandatory relocation, but said FCC would revisit matter if needed. Tristani stressed that such action would contravene statutory mandates.