Speculation continued to mount Tues. that FCC was about to release item that would allow NextWave re-auction winners to opt out of bidding obligations. Several sources said notice was being drafted at FCC that would release re-auction winners from $16 billion overhang from Jan. 2001 commitments, although as of early Tues. no item was on circulation on 8th floor. Move would come as interest had been growing on Capitol Hill in legislation sponsored in House Commerce Consumer Protection Subcommittee Chmn. Stearns (R-Fla.) that would allow bidders that chose to leave auction to receive full amount of down payments on licenses and not be held to original bids. Verizon Wireless also has been stepping up pressure in court, asking U.S. Court of Federal Claims Mon. to grant summary judgment on issues it was raising in litigation against govt. in NextWave case (CD Sept 10 p6). FCC has returned all but 15% of down payments made by bidders, meaning if Commission ultimately prevailed in appeal to U.S. Supreme Court and subsequent litigation, re-auction could be upheld. Several sources indicated FCC might be willing to release re-auction winners in advance of congressional action if it was confident that doing so wouldn’t undermine its Supreme Court case, for which oral argument will be heard Oct. 8.
Country of origin cases
One year after Sept. 11 attacks, some proposed federal wireless funding is either being eyed for cutbacks or has been put on hold pending changes in interoperability and priority access for national security and emergency personnel. Unclear funding scenario in some areas comes as scrutiny has intensified in last year over issues such as providing interoperable equipment for public safety agencies and other first responders. In case of priority access service (PAS) funding, which would give emergency access to wireless networks for certain national security and emergency responders, House and Senate appropriations bills have scaled back President Bush’s original $73 million request for program. Office of Management & Budget (OMB) official recently said he also was putting on hold plans for how $1.5 billion in federal wireless funding would be disbursed until it became clearer how overlaps among existing programs could be reduced.
SBC/Ameritech asked Mich. PSC for order directing KPMG Consulting to issue its report now on tests of carrier’s operation support systems (OSS). Tests originally were to have been completed in May but have been delayed several times since, with latest estimate being Nov. Ameritech said its Mich. OSS worked, CLECs were using systems every day without difficulty and were serving 1/4 of lines in Mich. Every day of delay means another day where Mich. consumers pay more than they should for long distance, Ameritech said. AT&T criticized Ameritech for what it charged was trying end- run around established process by “pushing KPMG aside and bringing in its own internal auditor [Ernst & Young] to complete testing of its flawed OSS because its systems can’t pass KPMG’s tests.” AT&T said Ameritech should have consulted with CLECs before proposing that radical change in OSS testing process. Test request follows Ameritech’s request last week for major increases in its unbundled network element rates.
In case brought by CompTel, U.S. Appeals Court, D.C., Thurs. asked lot of questions in oral argument about FCC’s decision to place usage restrictions on enhanced extended links (EELs), but didn’t give any indication whether it would uphold agency’s Nov. 2000 ruling. CompTel attorney Robert Aamoth told court that FCC’s decision had virtually halted CLEC use of EELs by setting use rules that were impossible to follow, even though Telecom Act supported CLEC requests for combinations of unbundled network elements (UNEs) such as EELs. FCC attorney John Ingle said agency was within its authority to place restriction on using EELs until it could make final decision in its pending UNE review proceeding on its concerns about EELs.
Terrorist attacks of year ago showed “resiliency of the American economy” in general and TV in particular, said Chris Rohrs, pres. of TV Bureau of Advertising (TvB), speaking at association’s annual forecast conference Thurs. in N.Y. After Sept. 11 attacks, TvB twice revised its TV revenue forecasts for this year, but eventually returned to original projections made year ago. TvB projected: (1) Spot TV would grow 1-3% in 2003, 7-9% in 2004. (2) National spot next year would be flat to 2% growth. (3) Local spot would increase 1- 3%. (4) TV network advertising dollars would gain 4-5% in 2003, syndication 2-4%, cable 3-5%. (4) National spot in 2004 would increase 8-10%, local spot 6-8%.
In emergency petition seeking expedited action, AT&T Wireless, Cingular Wireless and Verizon Wireless urged FCC to declare “unlawful” hotly disputed airborne wireless service planned by AirCell. Experimental license and waiver held by AirCell to operate system using cellular equipment to provide service to airborne customers without causing interference to terrestrial cellular system has been subject of recent back- and-forth in filings at FCC. Last year, U.S. Appeals Court, D.C., remanded AirCell’s waiver to FCC as not being adequately reconciled with record.
FCC in recent weeks has been virtually overrun by lobbyists seeking to convince commissioners and their staffs that “primary video” means either single video programming stream or as many as 6 streams of video, data and other material. Whether agency is poised to make decision remains unclear. Question could land Commission in Supreme Court, which is why commissioners are weighing arguments so carefully, FCC sources said. Sources said Commission may soon put issue out for public comment in new rulemaking in order to further spur DTV transition, but it couldn’t be determined at our deadline whether it would be on Sept. 12 meeting agenda. Issue centers on “must-carry” in digital world, where broadcasters will have 6 MHz of digital spectrum at their disposal. Although FCC already has decided broadcasters have right to carriage on cable systems, cable MSOs are fighting idea that stations have right to carriage of however many streams they can pack into that 6 MHz using digital compression technology.
FCC Chmn. Powell responded to Sen. Burns (R-Mont.) letter requesting more information about ultra-wideband (UWB) devices being tested by Commission, saying there were apparent misconceptions in Burns’ original Aug. 1 letter asking about agency’s testing plans (CD Aug 6 p5). Powell said FCC wasn’t currently testing UWB devices, few UWB devices were even available to be tested and most of them were ground-penetrating radar. “There is little opportunity for performing real world tests of interference of radio services now,” Powell wrote. He said FCC anticipated conducting tests of UWB devices once enough became available to provide representative sample. FCC currently is testing common consumer electronic devices such as computers, electric drills, hair dryers and others that are sources of incidental electromagnetic radiation that can cause interference with some radio signals. It also is studying radio noise that exists in environments such as from airports and factories, Powell wrote. In FCC’s decision implementing UWB standards, major consideration is determining whether restrictions are unnecessary considering existing sources of radio interference, Powell wrote. “These tests will provide a baseline measure of typical ambient noise levels as well as noise levels from unintentional radiators that might be present at a location where a UWB device is used,” he said. In earlier letter, Burns emphasized that testing results should be made public and should be open for public comment. Powell said FCC would publish report and test methodology in fall and insert copy of report into UWB rulemaking proceeding, which will give opportunity for public comment. “Commission staff have extensive experience in performing these types of measurements,” Powell said. “Therefore, it is not necessary to invite public comment on the measurement procedures before the report is published.”
FCC Office of Engineering & Technology Chief Edmond Thomas turned down emergency waiver petition filed by RadioShack on marketing deadline for radar detectors that didn’t comply with new rules to prevent VSAT interference (CD Aug 29 p4). FCC gave relatively limited relief to radar detector industry last month, providing 30 more days to market devices that meet Part 15 limits on emissions in 11.7- 12.2 GHz band but denying request for more time to make and sell compliant devices. FCC rejected separate request by RadioShack to let radar detectors that didn’t meet new emissions limits to be marketed for 6 months beyond original Sept. 27 deadline. FCC decided not to change Aug. 28 deadline for manufacturing or importing radar detectors that didn’t comply with new emission limits and decided to extend retail deadline by 30 days until Oct. 27. Latest OET decision turned down emergency request filed Aug. 30 by RadioShack that sought to extend marketing deadline from Oct. 27 to Nov. 30 for radar detectors that didn’t comply with new rules. Thomas said RadioShack arguments, such as need for more time to prevent having to substantially discount radar detectors by Oct. 27 deadline, were repetitive. He also cited RadioShack arguments that it would attempt to sell its existing stock of devices regardless of marketing deadline. “We find that RadioShack’s petition is repetitious and we are dismissing it,” Thomas wrote in Sept. 3 letter to company.
Dept. of Defense (DoD) has created new unit that will “coordinate, synchronize and direct” development of common communications architecture to link DoD, intelligence community and NASA networks. Peter Teets, Undersecy. of Air Force and dir. of National Reconnaissance Office (NRO), said Tues. in news conference at Pentagon that first tasks of Transformational Communications Office (TCO) would be to develop new architecture as well as technology acquisition strategy for program.