Bidding in FCC’s C- and F-block PCS auction continued to edge up in small increments Fri., with total hitting $16.8 billion. Bids for top 3 participants were little changed, with Verizon Wireless at $8.9 billion, AT&T-backed Alaska Native Wireless $2.8 billion and Cingular Wireless-backed Salmon PCS $2.4 billion. DCC PCS had $539.4 million, followed by Cook Inlet/VoiceStream GSM with $510.4 million, VoiceStream PCS with $479.4 million, and Leap Wireless with $342.3 million. Competition appeared to have cooled somewhat for N.Y.C. licenses, whose highest bids have remained unchanged for last several rounds. Verizon has top bids of $2.05 billion and $2.03 billion for 2 licenses in that market, with Alaska Native Wireless bidding $1.5 billion for 3rd. Verizon also has top bids for licenses in L.A. and Chicago, at much lower price levels of $513.5 million and $494.6 million, respectively. Auction for 422 licenses began Dec. 12 and has gone 73 rounds, with FCC stepping up bidding last week to 6 rounds daily from 4 to accelerate pace. Among 15 most populous markets, Verizon Wireless has high bids for 9 licenses, Alaska Native Wireless for 2, Salmon PCS for 3 and DCC PCS for one in Washington.
“I'd rather be a man of principle than a man of politics,” departing FCC Chmn. Kennard said Fri. in response to criticism of his administration (CD Jan 19 p1). “It’s a sad commentary on Washington that one can be considered too nice,” remarked ex-FCC staffer who now is communications attorney. Kennard spent day in variety of going-away activities including lunch where he presented his senior staff with “certificates of appreciation” and afternoon party attended by several hundred people from inside and outside FCC. Amid music by jazz band, Kennard was spoofed by variety of people. Mass Media Bureau Chief Roy Stewart gave him “first low-power radio license” for station WWEK (Kennard’s initials) which will broadcast “150 feet between Kinkos and the 7- 11.”
FCC hit Callais Cablevision with $133,000 fine late Fri. for repeatedly violating Commission’s cable signal leakage rules, largest amount ever assessed against cable operator for such problems. Agency found that Callais, which runs cable system in Grand Isle, La., violated leakage standards in tests on 3 separate days early last year, interfered with FAA aircraft approach frequencies, didn’t perform leakage tests on time and didn’t install necessary equipment to correct problem in time. FCC said Callais system, unlike MediaOne Detroit system fined $55,000 for signal leakage violations last year, deserved record fine because it showed “almost complete disregard for the rules designed to protect air traffic safety, including failure to offset frequencies and failure to make annual measurements to verify compliance with the basic leakage performance criteria.” Callais has 30 days to challenge fine.
Independent Cable & Telecom Assn. changed its name to Independent Multi-Family Communications Council (IMCC) and elected new 31-member board. Group, which represents private cable operators, multifamily dwelling unit (MDU) owners and product manufacturers and vendors, said it made switch to focus more on “improved products and services for multifamily community residents” and MDU owners. IMCC said it would continue pushing for repeal of cable mandatory access laws in states and elimination of “barriers to competition” at FCC.
Fox won’t promote Temptation Island in family-oriented shows, it said in letter responding to concern of FCC Comr. Tristani (CD Jan 19 p11). It said promos had been carried during such shows “on a limited number of occasions,” but that would stop “in the spirit of” network’s new policy of not accepting ads for R-rated films in family-oriented shows.
FCC Comr. Powell “remains the clear front-runner” to be next agency chairman and expects to be tapped this week, House Commerce Committee Chmn. Tauzin (R-La.) told reporters at TechNet lunch Fri. “I talked with him last night,” Tauzin said. “He said he hadn’t heard yet.” Addressing rumors Powell might be holding out for another Bush Administration position, Tauzin assured reporters: “He wants it.”
FCC rejected 5 petitions for reconsideration of modified rules for C- and F-block PCS auction that began Dec. 12. Petitions challenged rules that split C-block spectrum into 10 MHz blocks for 422-license auction. In order (CD Aug 28 p1), Commission reconfigured 30 MHz of C-block spectrum into 2 tiers, with first covering populations of at least 2.5 million and 2nd below that threshold. Two of three 10 MHz blocks in first tier and one of 3 blocks in lower tier are subject to open bids. Others are closed for entrepreneurial bidders. Alpine PCS, National Telephone Cooperative Assn., Northcoast Communications, OPASTCO, Rural Telecommunications Group (RTG) and U.S. Small Business Administration petitioned for reconsideration. On spectrum blocks, agency reiterated finding that “10 MHz is a viable minimum license size.” Order also: (1) Rejected Northcoast request to eliminate tiers and allow open bids only for single 10 MHz C-block license in each market. Northcoast raised concerns it wouldn’t be able to meet business plans to vie competitively for licenses in larger markets. (2) Rejected contentions by Alpine that by eliminating some entrepreneur eligibility restrictions, agency failed to follow statutory objectives, such as avoiding excessive license concentration. Some petitioners pointed to recent news reports in which large carriers said they had enough spectrum. Agency said by doing away with some, but not all, of eligibility restrictions for small business bidders, it balanced as many statutory goals as possible. (3) Denied request by Nextel to put in place bulk bidding procedure. (4) Rejected petitions for Northcoast, OPASTCO and RTG to increase bidding credits in open bidding as well as Alpine request on legislation passed by Congress in Aug. that granted qualifying Alaska Native regional corporations relief from transfer restrictions for small business bidders, as well as from unjust enrichment payment requirements. Legislation had effect of allowing Cook Inlet Region Inc. (CIRI) to transfer license to large carrier without paying unjust enrichment penalties. Alpine wanted agency to give same relief to entrepreneur bidders. If FCC were to reject that request, Alpine wanted it to amend auction rules to exclude CIRI from PCS auction altogether. Agency denied request, saying: “The relief accorded CIRI under the statute was specifically authorized by Congress and narrowly tailored.” Congress could have chosen to broaden relief to all similar bidders, but instead created exemption that applied to CIRI, order said.
FCC Wireless Bureau denied Pegasus Broadband petition asking Commission to dismiss Northpoint application for violating ex parte rules. Bureau said it would only “admonish” Northpoint to follow rules, which regulate disclosure and documentation, more closely. FCC said Northpoint “committed no significant violation” of ex parte rules.
In series of DTV technical decisions, FCC affirmed 8-VSB modulation, started rulemaking on requiring TV sets to have DTV tuner and took several other actions. FCC Chmn. Kennard said decisions would give broadcasters “the clarity and flexibility… to accelerate the buildout of their DTV operations.” He said he was pleased DTV tests “put… to rest” debate over modulation standard. Comr. Ness said FCC actions removed transition uncertainty and it was “time for all industries involved in the digital broadcast food chain to come together and redouble their efforts to achieve a speedy transition.”
SAN JOSE, Cal. - Telecom leaders need to develop regulatory strategy and regulators should become more flexible and less prescriptive, panelists said at Wireless Communications Assn. annual technology symposium here Wed. Regulators can help improve Internet broadband access and promote innovation by imposing regulations that are “technology-neutral,” said Industry Canada Spectrum Engineering Deputy Dir. Gen. Veena Rawat. Canadian regulatory agencies, she said, were moving away from “prescriptive, detailed technical standards” in favor of minimum constraints and only “essential technical rules.”