Verizon formally asked Pa. PUC to support Sec. 271 application to FCC for interLATA long distance authority and informed PUC it planned FCC filing in 100 days (around April 20). Verizon’s filing with PUC Tues. said carrier had met all 14 market-opening requirements of Sec. 271 checklist, its Pa. local markets were “fully and irreversibly open” to local competition and CLECs “can compete effectively using our systems.” Verizon said final report by KPMG Consulting on operation support systems test proved its claims: “Our systems scored an ‘A’ on this rigorous test. The results validate the real-world experience of more than 85 competitors who rely on our systems to provide local phone service” in Pa. Verizon said CLECs were serving 670,000 customers using 220,000 resold Verizon lines and 450,000 of their own lines. Verizon said it had implemented 164 interconnection agreements and 1,700 colocation agreements with competitors, had installed 310,000 trunks between its network and those of competitors, and exchanged more than 15 billion traffic min. with CLECs in 2000 -- 32% more than in 1999. Verizon said 85% of its residential lines and 91% of business lines were accessible to CLECs. Local rival AT&T disputed Verizon’s claim of 271 compliance, saying KPMG test failed to provide conclusive proof Verizon could handle commercial volumes of CLEC orders for voice loops and digital subscriber lines on day-to-day basis without glitches. AT&T said CLECs “continue to be hamstrung by Verizon’s wholesale unit” in Pa. local marketplace.
Cellular Telecommunications & Internet Assn. (CTIA) urged FCC to continue to forego regulation of wireless intercarrier roaming, contending automatic roaming rule isn’t needed. Comments are in response to notice of proposed rulemaking (NPRM) in which FCC examines whether mandatory automatic roaming rule remains unnecessary. NPRM said agency wouldn’t mandate automatic roaming unless market forces along couldn’t ensure availability of competitive roaming services. “The Commission’s current roaming requirements have proven sufficient to foster cellular and PCS roaming services without imposing undue costs” on industry, CTIA said. National Telephone Cooperative Assn. (NTCA) didn’t ask FCC to implement mandatory automatic roaming requirement, but asked it to continue to monitor situation to “ensure that roaming agreements do not discriminate against small and rural CMRS providers.” NTCA said market appears to be working “and automatic roaming agreements are generally available where it is technically and economically feasible.” While rural carriers don’t have trouble striking roaming deals, sometimes terms are “unjust,” group said. In such cases, NTCA said, “the rural carrier pays more for the privilege to roam in the urban territory than the large carrier pays to roam in the rural territory.” Rural Ala. carrier Corr Wireless Communications went step further, saying market is “clearly not working on its own to prevent abuses of power.” “Small independent carriers do not have the economic clout to bargain with large carriers who have their own wide-area footprints for automatic roaming,” Corr wrote, citing alleged problems with Cingular Wireless. “This permits large carriers to engage in the very sort of bullying abuses which led” to regulatory curbs for wireline competitors, Corr said. Corr is asking agency to adopt automatic roaming rule that tracks basic interconnection obligations of common carriers under Telecom Act. Several commenters cited concerns about wireless consolidation, which they said creates less incentive for larger competitors to strike low priced roaming pacts.
ICO-Teledesic Global Ltd. received FCC authority to transfer control of license held by predecessor Teledesic to construct, launch and operate nongeostationary orbit Fixed Satellite Service satellites. ICO also received exemption from space station “cutoff rule” that will allow it to continue prosecuting its pending letter of intent to access 2 GHz Mobile Satellite Service frequency bands. Commission said decision would permit completion of planned merger of Teledesic and ICO into single organizational structure and would serve public interest by facilitating rapid deployment and competition for broadband services. FCC gave companies 60 days to complete transaction.
Rep. Oxley (R-O.) may have lost his bid to lead Commerce Committee, but he still could have influence on telecom policy. He introduced bill (HR-235) to require FCC to eliminate its restrictions on newspaper-broadcast cross-ownership. Meanwhile, Rep. King (R-N.Y.) offered bill that would authorize FTC to issue new regulations on telemarketers. He has 9 initial co-sponsors, including Oxley. Also, two more lawmakers quickly brought back bills from last year: (1) Rep. Portman (R-O.) reintroduced his bill to repeal 3% telephone excise tax (now HR-236), with 30 initial co-sponsors. Bill passed House by 420-2 vote last year but never got vote in Senate. It then was folded into appropriations legislation that was vetoed by President Clinton. Bill again will go through Ways & Means Committee. It’s expected to get more favorable reception from incoming President Bush. (2) Rep. Holt (D-N.J.) reintroduced his measure (now HR-113) to prevent spamming on wireless devices. Introduced late in last session, Holt’s bill never got serious consideration.
As FCC readies long-anticipated inquiry into unifying carrier compensation methods, telecom industry appears less than united on how -- or even whether -- it should be done. FCC official said at news briefing Mon. that if Commission approved Notice of Inquiry proposed by Common Carrier Bureau, it would open proceeding that probably would take “several years.” Some industry representatives have urged agency to begin proceeding, saying it doesn’t make sense economically to have so many disparate intercarrier compensation methods. But others question value of rationalizing those different plans such as access charges, reciprocal compensation and various forms of wireless interconnection charges.
FCC Chmn. Kennard will announce his resignation as soon as Commission votes on AOL takeover of Time Warner, which is expected this week, Commission source told us. Kennard’s term expires in June but he was expected to leave once George Bush was sworn in as President Jan. 20. It will be up to Administration to decide whom to name as interim FCC chairman until permanent replacement for Kennard is appointed. FCC Comr. Powell is expected to be tapped but he hasn’t confirmed that. Source didn’t say when Kennard actually was leaving or reveal where he planned to work once he left. He moved to Commission from Verner, Liipfert, Bernhard, McPherson & Hand, where he was partner.
FCC, CPB and others that live off spending bills have new House Appropriations Committee subcommittee chairmen to lobby. House Republicans named Rep. Wolf (Va.) to head Commerce-Justice panel, replacing Rep. Rogers (R-Ky.), who moves to chmn. of Transportation Subcommittee. Rep. Regula (R-O.) takes spot of retired former Labor-HHS Chmn. Porter (R-Ill.). Among others, Rep. Taylor (R-N.C.) takes Legislative Branch panel and Rep. Istook (R-Okla.) gets Treasury-Postal. Other key committees hadn’t named subcommittee heads yet. On House Judiciary panel, it’s expected that Rep. Coble (R-N.C.) will keep his Courts and Intellectual Property post. Rep. Gekas (R-Pa.) reportedly is angling for Crime subcommittee vacated by former Rep. Bill McCollum (R-Fla.), and Rep. Smith (R-Tex.) is seeking Constitution panel once held by former Rep. Canady (R-Fla.). Senate Commerce Committee is likely to stay at 20 members, now split 10-10 instead of 11-9, Committee source said. That would allow addition of 2 Republicans and 2 Democrats, not accounting for any defections. We're told Senate Majority Leader (for another 2 weeks) Daschle (D-N.D.) could appoint Democratic slate as early as Thurs. Sources said Sen. Edwards (D-N.C.) is almost certain to be on it. Edwards introduced Internet privacy legislation last year, and N.C. has considerable high-tech constituency, so Edwards would be expected to follow Internet rules closely. Sources were less certain about other Democratic opening, although speculation has centered on newly elected Sen. Cantwell (D-Wash.), who defeated Commerce Committee member Slade Gorton (R-Wash.) and represents one of most technology-intensive states.
Pa. PUC gave Verizon “passing grade” after reviewing final report from KPMG Consulting on tests of carrier’s operation support systems (OSS), even though “some deficiencies” remain to be corrected. But PUC also made clear that its ultimate decision on whether to endorse any Verizon Sec. 271 interLATA long distance application to FCC would depend in large measure on how well company did in addressing OSS deficiencies and filling commercial CLEC service orders in next 3 months. KPMG told PUC Verizon had “passed sufficient operational aspects” to conclude test program. PUC’s Fri. action set stage for 100-day period during which agency will monitor Verizon’s commercial OSS performance and review its compliance with non-OSS-related market-opening requirements of Telecom Act’s 14-point checklist. Verizon said it was “pleased the PUC deemed the final KPMG report as a passing grade… We're confident that when all the evidence is examined, the PUC will support our long distance application to the FCC.” However, local rival AT&T said that unless PUC addressed gaps and “questionable metrics” in KPMG test results, Pa. could be vulnerable to same OSS glitches as hit Verizon in N.Y. after its long distance entry there. AT&T said Verizon was rushing to meet self-imposed “artificial deadline” for long distance entry and “hasn’t done all its homework when it comes to system readiness” for large volumes of CLEC service orders.
EchoStar could receive valuable Ka-band slot over continental U.S. if FCC approves request from VisionStar to transfer its Ka- band satellite slot to company, VisionStar said in Dec. 15 filing at agency. If Commission agrees, VisionStar/EchoStar partnership would take control of satellite licenses at 113 degrees W, directly over continental U.S. Commission granted VisionStar license for slot in May 1997 in first round of Ka-band allocations.
Gemstar International Group took fresh shot at Time Warner (TW as FCC continued to ponder AOL’s pending acquisition of TW. In 2-page letter to FCC Thurs., Gemstar, which has been sparring with TW over MSO’s temporary blocking of Gemstar’s electronic program guide on TW cable systems last year, warned Commission that cable operator easily could do same thing again because it had shown no remorse. Despite TW’s June “decision to desist from stripping,” Gemstar said, TW “neither acknowledges that stripping is a violation of the FCC’s rules and policies, nor undertakes that it will not resume stripping without awaiting definitive FCC action.” Gemstar urged Commission to “deal with the issues” raised “regarding the anticompetitive nature of Time Warner’s behavior” before approving AOL-TW deal. Specifically, Gemstar wants agency to impose conditions on AOL-TW prohibiting it from discriminating against rival interactive TV content providers.