Kan. Attorney Gen. Office reached agreement with private vendor GovConnect Inc. to maintain state’s new no-call telemarketing list. Pact means Kansans can start signing up for no-call registry on AG’s Web site and toll-free phone number. Those who sign up by Sept. 23 will be included on state’s first no-call list, which takes effect Oct. 1. Free registrations are good for 5 years. As of Aug. 19, telemarketers will be able to subscribe to list, priced at minimum $359 statewide or $149 for specific area code. State’s no-call law originally specified list to take effect July 1 with Direct Marketing Assn. as list overseer, but negotiations with DMA hit impasse because of certain provisions in list law and AG’s office had to seek another vendor.
Country of origin cases
In another case related to precedent-setting Goldwasser v. Ameritech, U.S. Dist. Court in Newark, N.J., Mon. dismissed antitrust claims against Verizon brought by competitor Ntegrity. U.S. Dist. Judge Garrett Brown ruled that dispute stemmed from interconnection agreement between 2 companies rather than antitrust issue: “Parties to an interconnection agreement with claims that the ILEC has failed to honor that contract may not resort to antitrust litigation to resolve those claims… Ntegrity’s antitrust claims stem only from Verizon’s performance under the express terms of the interconnection agreements. Those obligations alone cannot form the basis of an antitrust action.” Judge said that “sanctioning the use of antitrust lawsuits to resolve disputes under an interconnection agreement would invite CLECs to negotiate poor agreements and then allege antitrust violations in order to seek treble damages based on the ILECs’ failings under, or, as in this case, compliance with those agreements… Antitrust laws were designed to promote free competition and enhance consumer access to services, not to be an end-run around legislation imposing very specific duties.” Case originated from Verizon suit in Nov. 1999 against Ntegrity charging it owed unpaid bills. Ntegrity then brought antitrust counterclaim. In Goldwasser case, 7th U.S. Appeals Court, Chicago, ruled in 2000 that Bell companies couldn’t be sued on antitrust grounds for Telecom Act-related actions, such as disputes over interconnection agreements. Many antitrust suits against Bells stemming from Telecom Act have been dismissed since then although CLECs recently have won a few, including Aug. 2 ruling by 11th U.S. Appeals Court, Atlanta, that said lower court should have considered Covad’s antitrust complaint against BellSouth (CD Aug 5 p7). Judge also found there was common principle in all 3 appeals court decisions on Goldwasser issue: “That violations of the 1996 Act, standing alone, do not create liability under the general antitrust laws… Ntegrity’s antitrust claims stem only from Verizon’s performance under the express terms of the interconnection agreements… Those obligations alone cannot form the basis of an antitrust action.” Verizon Senior Vp John Thorne said Ntegrity case was “typical” of many Goldwasser cases which “start out as [disputes over] CLECs not paying bills and end up with the CLECs’ defending themselves by filing antitrust claims.” He also said that, since Judge Garrett didn’t dismiss Verizon’s collection case against Ntegrity, Verizon will continue with it.
National Infrastructure Protection Center (NIPC) is bolstering its ability to detect and predict potential threats to critical network infrastructure, and is seeking private sector providers of Internet and information security services for this effort. NIPC’s Analysis & Warning Section is looking for partners capable of accessing and analyzing data that identifies sources of cyberattacks. Such data must include country of origin, Internet protocol address and methodology of attacker, as well as motivation for attack, “if apparent,” NIPC said. Contractor “on a timely basis” must provide: (1) Notifications of and analytical reports on information security incidents. (2) Monthly briefings “on recent trends, patterns, vulnerabilities and attack tools.” (3) Quarterly in-person summary-updates. (4) Access to historical cyberattack data. Interested parties by Aug. 27 must submit bids to FBI’s Telecom Contracts & Audit Unit -- 703-814-4851.
VoiceStream and Western Wireless encouraged FCC to adopt declaratory ruling on rights that wireless carriers have to separately assign rating and routing points to their NXX codes. Several wireless commenters have urged FCC to rule in interconnection dispute between Sprint and BellSouth, stemming from Sprint petition for rulemaking in May (CD Aug 13 p6). Sprint disagreement with BellSouth centers around routing of traffic to central office code, known as NXX code, obtained by Sprint to serve subscribers around Jacksonville. Disagreement has to do with routing and rating points for that traffic that were geographically separate. BellSouth said it has agreed to interconnect such traffic but doesn’t believe arrangement is proper because it involves billing and compensation and falls under purview of state PUCs. In joint comments, VoiceStream and Western Wireless called on FCC to rule that: (1) All carriers load NPA (Number Plan Area)-NXX codes assigned by N. American Numbering Plan Administration to wireless providers or other carriers into their switches “within the timeframe established by industry guidelines.” (2) Wireless carriers have right to interconnect at “technically feasible points of their own choosing” on ILEC networks. VoiceStream and Western argued that ILECs don’t have right to insist that dedicated transport links be established to other locations or to rate centers assigned to neighboring ILEC’s NXX codes. (3) Interconnection may be direct or indirect. (4) ILECs must honor rating and routing points assigned by neighboring ILECs to their NXXs. “Rating and routing points need not be, and in most cases cannot be at the same location,” carriers said. (5) Carriers that originate commercial mobile radio service local calls must pay for facilities used to transport those calls to terminating carrier and must reimburse them for termination costs. In separate comments, Nextel told FCC that it alone sets “rules of the road” in such cases and that state PUCs shouldn’t be allowed to set different CMRS interconnection policies. Nextel also urged FCC to reject “any gamesmanship that attempts to alter the plain and straightforward FCC policy” that CMRS traffic that originates and terminates in same major trading area (MTA) is local traffic for reciprocal compensation purposes, regardless of location in MTA where call to CMRS customer begins and ends.
Senior telecom officials at Inter-American Telecom Commission (CITEL) assembly meeting in Washington Mon. stressed extent to which investments in advanced networks before current economic downturn haven’t adequately filled in gaps in digital divide in Latin American countries. While opening of telecom markets in individual countries in region has led to greater competition for business customers, in many cases that hasn’t translated down to poorest consumer groups, said Luis di Benedetto, pres. of Hispanoamerican Assn. of Research Centers & Telecom Companies (AHCIET). To expand universal service among such customer groups, stepped- up regulation will be needed, he said: “Market action as a driver is not enough to close the gap.” One key focus of week-long CITEL assembly meeting is fine-tuning of draft action plan for “Connectivity in the Americas” that would lay out regional blueprint for how countries could expand telecom and Internet services cooperatively. First day’s discussion turned, in part, to how more ubiquitous access to information technology should take into account wider availability of locally developed content and access for poor and rural areas that often still are bypassed by telephone connections. Several panelists pointed to increased challenges in those areas in current market downturns.
Federal govt. has changed date and location of homeland security technology expo originally scheduled for Sept. 19 at Washington Convention Center. Event has been rescheduled Sept. 18-19 and instead will be at D.C. Armory. Expo is sponsored by Office of Homeland Security, Bureau of Industry & Security, Technology Administration -- 202-482-8321.
Ga. Technology Authority issued new request for bids on state’s mammoth $1.8 billion 10-year contract to privatize all state and local govt. phone, wireless and Internet services by placing them in hands of single commercial vendor. Agency will hold Aug. 15 conference for potential bidders. Bids will be due Nov. 15, with contract to be awarded next April and service to start next July. Agency last month announced it would rebid contract after it disqualified proposal of WorldCom on ground of financial unfitness just days before WorldCom filed for bankruptcy. WorldCom disqualification left only one other bidder, consortium led by BellSouth and AT&T. Given magnitude and importance of contract, agency decided to rebid rather than negotiate with lone remaining bidder. As before, contract will include local, long distance, wireless, high-speed Internet, local area networks, computer equipment and support, 2-way radio and mobile data services for all state and local govt. entities. New proposal dropped some items in original proposal and no longer will cover new state data center, conversion of Ga. public TV stations to digital broadcasting, installation of Navigator highway camera system. Agency said those would be covered by separate contracts to be bid later. New proposal requires that bidders have minimum $1 billion in annual revenue and $250 million in unencumbered cash available for this contract.
Qualified bidders for Aug. 27 auction of licenses in lower 700 MHz band made $64.5 million in upfront payments, down from nearly $154 million before Congress scaled back auction and allowed participants to opt out of competition for licenses, FCC said late Wed. Earlier this summer, Congress delayed June 19 date for upper and lower 700 MHz auctions. Bidding for smaller C- and B-block licenses in lower band was delayed until at least Aug. 19, with FCC ultimately setting Aug. 27 date for that remaining auction. New auction date for rest of spectrum hasn’t been set. Law stipulated that only bidders that could participate in remaining lower 700 MHz band auction this summer were those already qualified to take part in original lower band bidding. Based on that law, FCC Wireless Bureau allowed previously qualified bidders to leave auction altogether and receive return of down payments. Bidders choosing to stay could select additional licenses and supplement upfront payments. Based on original block of licenses that had been part of lower 700 MHz auction, including larger A-, B- and E- block licenses, Council Tree Wireless had made original upfront payment of $40 million, matched by Spectrum Holdings with same amount. Council Tree’s upfront payment, according to FCC public notice released Wed., has been revised to $6.5 million. Spectrum Holdings now has upfront payment totaling $10,000. Based on revised list of qualified bidders, highest upfront payment still is that of Council Tree. Of 125 remaining qualified bidders who chose to stay in lower band auction, only 12 made upfront payments exceeding $1 million, including Paul Allen-backed Vulcan Spectrum, $1.5 million, and Omega Communications, $3.3 million, compared with $18.9 million in original lower 700 MHz band application. Among authorized bidders for Omega is Mario Gabelli, chmn. of Gabelli Asset Management, whose media holdings have included stake in Black Entertainment TV. Spectrum Holdings, whose upfront payments went from $40 million to $10,000, had petitioned FCC for reconsideration of decision to allow previously qualified bidders to select licenses to pursue other than ones originally identified in their applications. Spectrum Holdings had filed petition for reconsideration, which recently was rejected by Wireless Bureau, at around time of July 3 deadline for seeking return of upfront payments.
CNBC reported Thurs. that WorldCom had found additional $2 billion in fraudulent accounting on top of $3.8 billion already reported. Company found fraudulent statements dating back to 1999 and 2000, CNBC said. Company originally reported it had issued fraudulent statements in 2001 and 2002. When it originally disclosed fraudulent reporting, WorldCom said it could uncover more accounting fraud as it continued to investigate further back in time.
Nextel, public safety groups and coalition of private wireless licensees submitted revised spectrum swap plan to FCC Wed. to alleviate public safety interference at 800 MHz. Revamped proposal came after Commission last month granted additional time for parties to craft solutions in reply comments on rulemaking adopted earlier this year. Unlike original White Paper that Nextel submitted to FCC in Nov. on interference solutions, compromise plan explicitly provides replacement spectrum for private wireless operators. Another difference is that original Nextel plan would have provided carrier with 10 MHz in mobile satellite service band at 2.1 GHz in exchange for spectrum it was giving up elsewhere to reconfigure 700, 800 and 900 MHz bands. Latest plan instead would take that replacement spectrum from 5 MHz of unlicensed PCS spectrum at 1.9 GHz and another 5 MHz of reserve MSS spectrum, Nextel Senior Vp-Chief Regulatory Officer Robert Foosaner said in conference call with investors Wed.