IDT Winstar and Verizon told FCC they had settled dispute over former’s acquisition of assets of fixed wireless provider that filed for Chapter 11 protection in 2001. But Verizon said in Jan. 2 filing that its counter-petition for declaratory ruling would remain alive because issues could recur under similar scenarios. IDT Winstar and Bell companies had disagreed in last year over terms of interconnection agreements to which RBOCs must be held for fixed wireless provider that has emerged from Chapter 11. In April, IDT Winstar filed emergency petition for declaratory ruling, raising concerns about “immediate threats” by Verizon and Qwest to deny or delay providing facilities. Winstar contended Communications Act and agency rules mandated that those facilities and services be provided to company. But Bell companies contended federal bankruptcy law required IDT Winstar to assume and cure past debt on contracts assumed by pre-Chapter 11 Winstar. Verizon told Commission its process shouldn’t be used to allow carriers in bankruptcy to avoid requirements of bankruptcy court and that Winstar had period to assume or reject existing services or facilities and to make “appropriate cure” for services assumed from pre-Chapter 11 company. IDT Winstar and Verizon said their notice informing FCC of settlement didn’t affect relief that Winstar sought against other LECs in its original petition.
Country of origin cases
Radio Ad Bureau (RAB) said preregistration for its sales, management and leadership conference Jan. 30-Feb. 2 in New Orleans was 50% ahead of last year at same time. As result, RAB said it wouldn’t increase fee for late registrants as originally planned.
Upcoming Senate Commerce Committee hearing on telecom competition will focus exclusively on broadband and wireline competition. Original announcement for Jan. 14 hearing was vague and said FCC comrs. would be invited to discuss “telecommunications competition.” Senate sources said that could include number of competition subjects. But Committee Chmn. McCain (R-Ariz.) and ranking Democrat Hollings (S.C.) sent letter to FCC members asking that they focus their testimony on pending proceedings at Commission dealing with broadband and wireline competition. Letter also asked that testimony be summarized to 5 min. and included copy of “Rules of Procedure” for testifying before Commerce Committee. Hearing is scheduled at 9:30 a.m., Rm. 253, Russell Bldg.
Verizon offered $50,000 reward for information leading to arrest and conviction of vandals who disrupted phone service to 9,000 customers in central and southern N.J. over last 3 weeks. First incident occurred in Bergen County Dec. 18, just one day before Verizon laid off 361 N.J. network technicians as part of companywide work force reduction that eliminated 3,500 jobs. Since Dec. 19 layoff, Verizon said it experienced 64 more instances of vandalism to poles, lines, terminal boxes and other outside plant facilities. Carrier declined to speculate on any link between its layoffs and vandal attacks, but said nature of incidents indicated vandals had good knowledge of phone system’s workings. Laid- off technicians all were IBEW members. Local union officials said they didn’t condone vandalism for any reason. Verizon originally offered $25,000 reward but decided Jan. 2 to double it in face of continued vandalism incidents.
NTIA is backing more-conservative emissions limits to protect GPS for proposed ancillary terrestrial component (ATC) of mobile satellite service (MSS) than either private sector or other govt. agencies seek, govt. and industry sources said. With FCC decision on ATC requests expected shortly, NTIA and Commission are working toward resolution of one of last sticking points in proceeding. Some are concerned that final figures could lead to protection levels that represented “one-size-fits-all” approach applied to other bands.
U.K. Office of Telecom (Oftel) tentatively ordered BT to reduce its Premium Rate Service (PRS) bad debt surcharges in number translation service (NTS) formula to 2.05% from 4.4%. Decision followed dispute between BT and Cable & Wireless (C&W) over PRS bad debt surcharge that BT as originating operator could retain from PRS calls that terminated on C&W’s network. In its draft directive released Fri., Oftel said there was error in calculation of NTS retail uplift and costs were “inadvertently included within the calculations.” Comments are due Jan. 30.
China and some Latin American countries don’t comply with WTO requirements, AT&T said in comments filed with U.S. Trade Representative (USTR). AT&T said China failed to realize its potential as competitive market due to its “overly narrow” interpretation of market access opportunities to foreign carriers and lack of independent regulator. It said market entry in China was delayed by “extremely narrow” views of Ministry of Information Industry’s (MII) on what constituted value-added service for purpose of international value-added network service licensing. It said definition of foreign investors in China was “much more narrow” than list of value-added services in China’s own Telecom Regulation that applied to domestic-owned operators. “Without a change in MII interpretation, the net effect of current licensing criteria is to define foreign-invested value-added service operators out of competition,” AT&T said. It also said Chinese govt.’s top priority should be to finalize and adopt pending Telecom Law that would establish regulatory body, organizationally separate from govt. agencies “that are focused on developing the state-owned telecommunications industry.” AT&T said regulatory environment in China was discouraging carriers from entering market: “This will continue until foreign investor have a basis for confidence that China has a clear intention and a demonstrated plan to implement its WTO commitments.” AT&T said telecom market in Mexico also was harmed by “many barriers” to telecom competition. It said although Mexico acknowledged importance of open markets by making WTO commitments, it failed to implement them. It said Mexico failed to ensure availability of cost-oriented interconnection arrangements with its major supplier Telmex or to prevent anticompetitive practices by Telmex. AT&T said Mexico should eliminate its prohibition on foreign control of Mexican carriers authorized to own and operate basic telecom facilities. It expressed concern about termination rates in Argentina that it said, “greatly exceed” cost-oriented levels. AT&T said Telecom Argentina and Telefonica de Argentina notified correspondents last year that after Jan. 1 they would apply increased rate of $0.18 per min. for international calls terminating on mobile networks, which would be more than 100% increase over previous mobile termination rates. However, AT&T said, carriers proposed to continue to charge “much lower” rates for domestic-originated calls terminating on mobile networks. Verizon didn’t file comments, but its spokeswoman said it was concerned about Mexico compliance with telecom trade agreements. She said Verizon was “optimistic” about recent actions of Mexican Parliament on telecom issues and would be working with country to solve problems.
Hughes Electronics and Boeing Satellite Systems (BSS) have 30 days to reply to 123 charges by State Department filed Dec. 26 alleging violation of Arms Export Control Act and International Traffic in Arms Regulations (ITAR). State contended unauthorized transfer of “assistance” to China “relating to the design, development, operation, maintenance, modification or repair of the launch facility or launch vehicle[s]” that exploded on takeoff. Charges are in 32- page letter sent to companies.
U.S. Appeals Court, D.C., extended stay of its decision in USTA v. FCC until Feb. 20, as expected. FCC had asked for extension in early Dec., signaling it didn’t expect to complete action on related triennial review of unbundled network elements (UNEs) by court’s original Jan. 3 deadline. In its May decision (CD May 28 p1), D.C. Circuit had remanded FCC’s UNE and line-sharing rules. Commission is expected to deal with court’s remand in triennial review decision.
Eldorado Communications challenged FCC Wireless Bureau decision that granted NextWave re-auction winners relief on what had been their pending bid payment obligations. In Nov., FCC agreed to let re-auction winners opt out of their Jan. 2001 bid obligations, despite continued litigation over NextWave licenses. Commission recently followed up by approving decisions of auction winners to exit bid commitments. In application for review filed Dec. 24 at FCC, Eldorado said bureau decision should be overturned because it conflicted with statutes, regulation, case precedent, FCC policy. Earlier this month, Eldorado also asked U.S. Appeals Court, D.C., to review FCC order. Eldorado had competed with NextWave in original C-block auction, filing for bankruptcy protection after auction and returning C-block licenses it won in 1996 bidding. It said it had standing to file for review at FCC “because it is a similarly situated license applicant who was not offered the relief provided” by bureau’s decision. Eldorado argued it wasn’t given chance to dismiss its applications in that earlier auction “with a release of all associated payment obligations.” It told FCC it wouldn’t object to decision on its application being deferred until U.S. Appeals Court, D.C., issues ruling.