Minn. PUC hearing officer recommended Qwest be punished for violating Sec. 251 and 252 of federal Telecom Act because of what he called its “knowing and intentional” failure to file 25 local agreements or contract amendments it made with CLECs. Administrative Law Judge Allan Klein’s recommendation said penalties would be in order because Qwest had offered special deals to favored few partly to quell dissent at hearings on its request for PUC support of its Sec. 271 long distance entry bid. He suggested PUC had opportunity to be “creative in fashioning a remedy” that could be tied to Qwest’s Sec. 271 petition. Klein didn’t suggest specific penalties. PUC could fine Qwest up to $10,000 per violation per day and impose nonfinancial conditions to close case. ALJ said unfiled agreements or amendments affected compensation, service quality and other terms and conditions for interconnection, UNEs, resale, rights-of-way, numbering. Minn. Dept. of Commerce, which filed original complaint alleging secret Qwest-CLEC deals in Feb., said ALJ’s recommendation “captured Qwest’s lack of respect for the regulatory process” and reflected economic harm to competition because of unfiled deals. State Commerce Dept. said it would ask for maximum financial penalty, which would reach $50 million, plus nonfinancial remedies that could include functional or structural separation of carrier’s wholesale operation. Qwest said ALJ’s recommendation was wrong and should be rejected by PUC. It said filing obligations are “unsettled area of federal law” that ultimately must be decided by FCC, not state ALJ. Carrier also faulted process, saying author of key testimony against it didn’t appear at ALJ hearings and therefore couldn’t be cross-examined. ALJ’s recommendation isn’t final word on matter. Parties over next 3 weeks will file exceptions to recommendations, with PUC tentatively planning Oct. 24 vote on case. If PUC voted to convict, it likely would set separate proceeding to fix penalty. AT&T, which has complaints pending in other Qwest states alleging secret Qwest deals with CLECs, said it hoped Minn. ALJ’s recommendation would spur other states to scrutinize situation more carefully.
Country of origin cases
Loral doesn’t have to use Chinese Long March rocket to launch Asia-Pacific Telecom (APT) Apstar 5 satellite if U.S. govt. doesn’t approve export license by Sept. 30, under terms of new $110 million contract with APT Satellite of Hong Kong, Loral announced Mon. APT has decided to allow Loral to break agreement to use Chinese booster in exchange for purchase of half of 54 transponders on Apstar 5 along with sharing $230 million cost of building, launching and insuring satellite, companies said. Loral will retain 50% ownership of satellite regardless of launch site, under contract signed Sept. 20. APT and Loral will select new launcher jointly if State Dept. fails to approve license, companies said. Loral’s capacity on Apstar 5 will be designated Telstar 14. Satellite is scheduled for launch in 3rd quarter next year, Loral said.
US LEC petitioned FCC for declaratory ruling reaffirming that LECs we entitled to recover access charges from IXCs for providing access service on interexchange calls that originate from or end on mobile wireless networks. US LEC said long distance carrier, which it didn’t name, had challenged US LEC’s billing for access service provided on long distance calls to and from commercial mobile radio service (CMRS) subscribers. It said such challenge hadn’t emerged in past but that issue was relevant for FCC to clarify as more wireless end users used their phones as part of national, long distance pricing plans. “Under the existing compensation structure established by the Commission, it is clear that LECs are entitled to access charges for these calls, and it is also clear that the prevailing practice is for LECs to assess access charges for these calls and for the IXC to pay these charges,” US LEC said. Competitive carrier sought “prompt ruling” from FCC “reaffirming” right of LECs to bill for access service they provided on such calls “to dispel any controversy or uncertainty surrounding this issue.” Company said FCC had acknowledged that until wireless operators generated enough traffic to justify direct connections to IXC points of presence, most CMRS carriers were expected to rely on LECs to interconnect interexchange traffic to IXCs. As wireless subscribers step up their use of national long distance calling plans, LEC networks increasingly will be called on to provide access service to IXCs, US LEC said. “It is vital that LECs be able to recover access charges for providing this access service,” company said. FCC recently ruled that Sprint PCS wasn’t barred from charging AT&T access fees for use of Sprint PCS network, but that AT&T wasn’t required to pay them absent contractual obligation to do so. That decision “reinforces” idea that LECs can impose access charges for CMRS traffic, US LEC said. “Unlike CMRS providers, LECs have tariffed access charges and their access charges are regulated,” filing said.
FCC’s Public Safety National Coordination Committee (NCC) approved system design criteria Fri. that would recommend more-robust signal levels to help public safety operators withstand potential interference from commercial operators at 700 MHz, although several licensees raised cost concerns. Policy statement adopted by NCC’s steering committee said that to fend off potential interference from commercial wireless operators at 700 MHz, public safety systems should be designed with higher minimum signal levels than they typically have today. NCC recommendation is similar to Nextel proposal for public safety receiver standards in FCC proceeding examining how to mitigate interference to public safety at 800 MHz. Among reconfiguration proposals pending at FCC are suggestions that public safety operators provide more-robust signal levels in range of 50 dBm, compared with 40 dBm for which many systems currently are designed.
FCC should assign new 87 degrees W orbital location to CAI Data for its license to provide fixed satellite service using Ka-band frequencies, company said. Motorola originally owned license before Commission declared it null and void for failing to meet required milestones, filing said. Since license is available for reassignment, CAI should receive it because 87 degrees orbital location is full Conus slot and complements business plan for one satellite better than assigned slot at 125 degrees W.
Lockheed Martin asked FCC to dismiss its V-band applications to launch and operate 9 geostationary (GS) fixed satellite service and broadcasting satellite service satellites in 39.5-42.5 GHz and 47.2-50.2 GHz bands, in filing Thurs. Lockheed said it filed its applications 5 years ago in response to Commission cut-off notice that established processing round for V-band applications. Since then, FCC hasn’t accepted applications for filing or processing, Lockheed said. Company is believed to be first to drop out of V-band proceeding.
Draft bill circulated by Reps. Tauzin (R-La.) and Dingell (D-Mich.) would require broadcasters to cease analog TV service and operate in digital only by Dec. 31, 2006, and do so without dual must-carry. Bill, if passed, would impose 2006 date originally intended by Congress when it mandated that broadcasters return their analog spectrum and effectively shut down analog broadcasting for good. Under current law, TV station doesn’t have to return its analog spectrum until 85% of local market can receive DTV signal, but new bill draws hard-and-fast line at Dec. 31, 2006 -- 85% or not.
ABC TV affiliates’ board and TV network officials held lengthy conference call Thurs. on renewing expired pact whereby stations contributed $37 million annually toward network’s costs to rights for Mon. Night Football. Original agreement expired July 31 (CD July 8 p5), and there have been 2 extensions for telecasts that resumed in Aug. Board reportedly didn’t accept newest ABC offer, but negotiator told us “we made good progress… we're very close [with] a few minor issues still to be resolved.” It’s understood Affiliates’ Chmn. Bruce Baker (who couldn’t be reached for comment) of Cox TV was continuing talks with network at our deadline. Any agreement would be submitted to full affiliate body for ratification.
Industrial Telecom Assn. (ITA) petitioned FCC for rulemaking that would bar daily business communications on Family Radio Service (FRS) frequencies. FCC issued order in 1996 that created FRS for short-distance, 2-way, personal communications. “The overcrowding of FRS spectrum by business use is depleting the usefulness of FRS for families and friends, especially in emergency situations,” ITA said. Group argued that Commission should prohibit traditional business use of that spectrum because it wasn’t traffic that agency originally envisioned for FRS. “We believe the public interest benefit of restricting traditional business use on FRS channels outweighs the Commission’s objective of minimal regulation,” petition said. ITA acknowledged FCC rules allowed business activities on Citizen Band radio service, of which FRS is part, but it said agency didn’t intend that those channels be “overrun” with daily business communication. ITA also contended business activity reference in CB rules referred to business activities of general public, not daily communications of business. It said its concern was that congested spectrum on FRS channels meant that if individual was trying to use FRS unit, he or she might not be able to communicate in area in which single business deployed multiple FRS units. “Businesses, if restricted from FRS, would be required to be licensed on traditional business radio spectrum, which is a more reliable alternative for all involved,” ITA said.
FCC auction of C- and D-block licenses of lower 700 MHz spectrum ended Wed. with total net bids of $88.7 million, with Aloha Partners leading with $24.1 million. Paul Allen- backed Vulcan Spectrum was distant 2nd with $15.1 million, followed by Cavalier Group with $6.5 million. Of 125 bidders originally qualified to compete, 102 remained at end of 84 rounds, seeking 484 licenses. Auction, which started Aug. 27, had been scaled back this summer when Congress delayed June 19 start for both upper and lower 700 MHz auctions, leaving summer bidding time frame for only smaller C- and D- block licenses of lower band. Total of net bids was close to $64.5 million in upfront payments made by bidders, which were down from nearly $154 million in upfront payments before Hill pared down auction and allowed participants to opt out of bidding. Rounding out top 10 high bidders were Union Telephone Co., 4th, with $4.5 million; LIN TV $4.3 million, DataCom Wireless $3.3 million, Harbor Wireless $2.8 million, MilkyWay Broadband $2.8 million, Redwood County Telephone $1.9 million, David Gates $1.7 million. Of licenses for cellular market areas, including metropolitan statistical areas and rural markets, largest single successful bid was by Aloha for L.A. license at $5.4 million. Cavalier Group bid $4.5 million for N.Y.-Newark and Vulcan $4 million for Seattle area and $2.3 million for Portland, Ore. Among licenses divided by larger economic area groupings (EAGs), only Pacific area license was sold to Aloha for $4.7 million. Final FCC results posted Wed. said EAG licenses for 5 other parts of country didn’t have any takers.