ALTS submitted proposal to FCC to curb high CLEC access charges without more drastic measure of mandatory detariffing. ALTS plan proposed Thurs. would: (1) Set ceiling of 2.5 cents per min. for CLECs serving large markets. Different formula would be used for rural CLECs. (2) Make CLECs subject to mandatory detariffing if they exceeded ceiling. (3) Protect CLECs from “harassing” tactics by large interexchange carriers (IXCs). For example, FCC would “affirm” that IXCs couldn’t refuse to pay filed tariff rates. Agency also would define terms under which IXCs could refuse to terminate service to end users served by CLECs that charged higher-than-permissible access rates. Proposal, called Guaranteed Reduced Exchange Access Tariffs (GREAT), was presented in comments to FCC on whether mandatory detariffing should be used to discourage excessive rates (CC Doc. 97-146). Agency had expressed concern that under “filed rate doctrine” of tariff law, CLECs could set unreasonably high rates and enforce payment through federal tariffs. ALTS said plan would “ensure reasonable CLEC access charge levels while at the same time promoting regulatory certainty.”
U.S. Appeals Court, D.C., ruling Tues. that rejected SBC’s advanced services subsidiary (CD Jan 10 p1) appeared to have raised more questions than it answered. Observers questioned Wed. whether decision might pressure Congress to revise Telecom Act to account for advanced services, how ruling would affect similar arrangement at Verizon and how it might play out under new Republican FCC. Court overturned trade-off FCC made with SBC: FCC allowed SBC to provide advanced services free of interconnection requirements if company formed separate affiliate to provide those services. In response to appeal filed by Assn. of Communications Enterprises (ASCENT), court ruled FCC didn’t have authority to forgo interconnection requirements of Sec. 251(c) just because SBC was providing advanced, rather than basic, services and using separate subsidiary. ASCENT represents competitive carriers, particularly those that resale ILEC service.
Paxson announced series of TV station transactions, including: (1) It agreed to sell KBPX (Ch. 13) Flagstaff and WPXS (Ch. 13) Mt. Vernon, Ill., to Equity Bcstg., terms not disclosed. Stations will remain Pax affiliates. It said sales were move toward complying with FCC ownership cap. Deals mean Paxson stations will reach 33.1% of U.S. households, it said. (2) Pax TV signed joint sales agreements with Scripps-owned NBC stations in Kansas City (KSHB-TV, Ch. 13), Palm Beach (WPTV, Ch. 5), Tulsa (KJRH, Ch. 2). NBC stations will provide sales and marketing infrastructure for Pax stations. (3) Paxson signed joint sales agreement with Dispatch Bcst. station WTHR-TV (Ch. 13) Indianapolis (NBC). WTHR-TV will provide sales and marketing for WIPX-TV (Ch. 63) Bloomington, Ind.
As FCC continued to weigh AOL’s pending purchase of Time Warner (TW) Wed., consumer groups and smaller ISPs pressed Commission to impose instant messaging (IM) service interoperability and tighter cable open access conditions on merged company. Moves came as one-year anniversary of AOL-TW deal announcement passed without expected merger approval by Commission, which has been grappling with possible additional conditions since FTC okayed deal Dec. 14. While Republican Comrs. Powell and Furchtgott-Roth reportedly have voted to approve merger without additional conditions, outgoing Chmn. Kennard and Democrat Comrs. Ness and Tristani still were trying to craft compromise on IM issue that would set some requirements. In ex parte presentations earlier this week, Consumers Union and Media Access Project urged agency staffers to back interoperability standards for IM services. They argued that reported Cable Bureau staff proposal to force AOL-TW to open its high-speed cable lines to 2nd, unaffiliated IM service was “of limited utility.” On open access issue, consumer groups called on FCC to mandate that AOL-TW provide access to smaller local and regional ISPs as well as such larger national ones as EarthLink. They said proposed requirement would advance “Commission’s public interest objectives of diversity and localism.” Group of smaller ISPs submitted proposed merger condition to FCC Tues. that would require AOL-TW to “enter into a contract with at least one local and one regional ISP in each franchise area in which cable modem service is made available.” ISP group also called on Commission to make AOL-TW open its cable lines to business-oriented services provided by independent ISPs.
Consumer Electronics Retailers Coalition (CERC) urged FCC to reject NCTA and Time Warner petitions for reconsideration of agency’s cable-ready labels for new DTV sets (CD Nov 29 p5). Signaling no letup in battle between consumer electronics and cable industries over DTV set labels and other DTV-cable compatibility issues, CERC argued that real problem was OpenCable specifications for advanced digital cable set-top boxes and integrated TV sets, not set labels adopted by Commission. In 10- page filing with FCC, CERC criticized cable industry for not supporting digital cable boxes “capable of competition with the MSO-distributed products now on the market.” Group said it was “cable industry compliance, not the labels, that needs to be reformed.” CERC also said NCTA was seeking to “turn this labeling proceeding into a substantive mandate that all OpenCable-reliant DTV receivers must include the ‘1394’ interface” favored by cable and broadcasting industries for digital sets. CERC said cable industry’s own focus group studies showed that “the labels previously recommended by NCTA are… not good enough.”
U.S. Appeals Court, D.C., remanded low-power FM (LPFM) rules to FCC to give Commission time to implement latest legislation, responding to NAB petition (CD Dec 28 p4). Court said parties should report to court within 21 days after FCC action, to allow court to decide whether more action was needed. Court also said FCC must implement character qualification provisions of Radio Bcstg. Preservation Act.
OPASTCO urged FCC to set higher benchmark for prices charged by rural CLECs for access because their costs were higher. Commenting on FCC public notice that asked about effect of benchmarks on rural CLECs (CC Doc. 96-262), OPASTCO said it supported idea of benchmarks to hold down CLEC access charges but “a single benchmarked rate would not be suitable for all CLECs.” Higher cutoff should be established “for CLECs serving rural or high-cost areas that suitably reflects their higher costs of providing service,” OPASTCO said. Assn. said all of its members were rural telcos and about 1/3 of them operated CLECs.
BellSouth told FCC it was opposed to request by Dept. of Justice and FBI for additional security requirements under Communications Assistance for Law Enforcement Act (CALEA). DoJ/FBI asked agency in Nov. to require carriers to: (1) Submit name, phone number, e-mail address and other contact information for person designated as point of contact for CALEA issue. (2) Notify FCC in writing or by e-mail of any change in such contact information. BellSouth said requirements were “unnecessary, burdensome and inconsistent with the Commission’s minimal set of guidelines for compliance with CALEA’s systems security and integrity provisions.”
FCC, NTIA and Industry Canada reached agreement on spectrum- sharing requirements along U.S.-Canada border for U.S. Local Multipoint Distribution Service (LMDS) and Canadian Local Multipoint Communications Service (LMCS). Interim arrangement also covers certain services in 27 GHz, 29 GHz and 31 GHz. FCC said arrangement defined coordination requirements to help prevent cross-border interference. It said pact would help promote services such as high-speed Internet access and high-speed data. Arrangement calls for licensees of systems in 27 GHz to coordinate services on either side of border, with carriers encouraged to develop their own sharing agreements. If licensees work out their own sharing arrangement, FCC said that agreement will be followed rather than coordination process outlined in U.S.-Canada agreement. Without such sharing arrangements, coordination will be based on different power flux density (pfd) levels calculated at service area boundaries. In 29 and 31 GHz bands, coordination isn’t required if station generates pfd signal less than or equal to -105 dBW/m2 in any 1 MHz band at border. Above that level, coordination is necessary before deployment. In U.S., 27.35-27.5 GHz is occupied by federal govt. fixed and mobile systems and intersatellite service. That means NTIA and Industry Canada will represent licensees in arranging for coordination in that band segment, FCC said. “This arrangement gives licensees the flexibility to develop their own border-sharing agreements and will encourage expanded development of the 27, 29 and 31 GHz bands,” FCC International Bureau Chief Donald Abelson said. Arrangement includes list of service areas that may need to coordinate with each other. In Canada, 27 GHz band is designated for LMCS, but nation hasn’t yet designated radio service for 29 and 31 GHz. In U.S., 29 GHz is allocated for LMDS and in Canada for fixed and mobile service. Arrangement doesn’t apply to mobile services in those bands, although footnote to arrangement said it might be amended if Canada designated 29 and 31 GHz for fixed service. FCC said arrangement was part of its effort to negotiate agreements with Canada and Mexico to promote efficient spectrum use in border regions -- www.fcc.gov/ib/pnd/agree.
Helgi Walker, aide to FCC Comr. Furchtgott-Roth, will move to White House as assoc. White House counsel and special asst., his office said. Walker, who specialized in mass media and cable issues, will be replaced by Ben Golant of FCC Cable Bureau.