FCC issued long-awaited order Thurs. on Communications Assistance for Law Enforcement Act (CALEA) remand, keeping intact so-called punch list requirements that wireline and wireless carriers had urged Commission to drop. Lengthy order adopted definition for call-identifying information that was broader than that sought by wireless industry and others. But Commission said order, which responded to Aug. 2000 partial remand by U.S. Appeals Court, D.C., adopted approach for call-identifying information that could be more easily “converted into network capabilities” than definition backed by Justice Dept. and FBI. D.C. Circuit ruling had vacated 4 punch-list provisions covering custom-calling features and dialed digits, saying FCC hadn’t adequately explained why those capabilities were included in earlier CALEA order. On cost considerations related to those electronic surveillance capabilities, D.C. Circuit said it couldn’t make connection between facts on which Commission based its decision and choices it made. In latest order, FCC outlined its reasoning and stood by its required implementation of CALEA surveillance capabilities as cost- effective. FCC Comr. Copps expressed concern that CALEA- related costs for those mandates would be high for residential customers and wireless carriers, particularly rural providers.
Country of origin cases
TV Music License Committee sees real progress in its music licensing agreement with BMI, officials said here. Settlement at least partially accepts TV station arguments that each station’s actual audience is down, and that amount of music used on each station is down because of growth of news, talk and reality programming, said Catherine Nierle of Post-Newsweek Stations. Settlement also includes license covering stations’ web sites, both for live and archived streaming, and DTV signals, she said. One concern, said broadcaster lawyer Bruce Rich, is that new licensing firm, SESAC, is competing for music composers by promising higher license fees. Traditional groups BMI and ASCAP have had to counter with their own fee promises, Rich said, and broadcasters worry fees will be passed on to them. New final se agreements provide local broadcast TV stations with public performance rights to BMI’s repertoire of about 4.5 million musical works. Agreements run from April 1999 through Dec. 2004. Parties agreed to settlement for April 1999 through Dec. 2001 period that will be paid by local TV stations over next 3 years along with their newly agreed to fees. Stations licensed on blanket basis will pay their allocated share of $85 million annual blanket base fee. Stations also may choose per-program license agreement, and will pay their allocated share of $98.1 million per program base fee. Under new agreements, stations can Webcast locally produced news and news-based public affairs programming on live or archived basis from their Internet sites. Stations’ digital TV signals also are covered in agreements. “We have worked hard with representatives from the local television industry to create an agreement that fairly compensates BMI songwriters, composers and music publishers and encourages our television customers to use BMI works for the purpose of increasing their viewership,” BMI CEO Frances Preston said. TMLC Co- Chmn Charles Sennet said new agreement “provides fair compensation to BMI for their share of the music we broadcast on local television. This was and will continue to be the focus of our negotiations with all music performing rights organizations.”
LAS VEGAS -- Compliance with FCC Chmn. Powell’s DTV plan is purely voluntary, he emphasized to reporters Tues. after speaking at NAB convention here: “The question of further government action lurking in the wings is not before us.” However, industry officials continued to speculate that industries that didn’t comply with plan to accelerate DTV transition (CD April 5 p1) could face retaliation either in Commission decisions or as result of congressional action on issues such as setting deadline for cable compatibility or defining what portion of broadcast signal must be carried on cable.
Sprint told FCC it still was opposed to Verizon’s bid for Sec. 271 approval in N.J. because latter’s refiled application showed little improvement in competitive residential entry. Verizon filed initial application Dec. 20, then withdrew it March 19 after FCC raised questions about it. “Verizon’s data demonstrate that little has changed since its original application and that competitive residential service in New Jersey is sorely lacking,” Sprint said Mon., deadline for initial comments on refiled application (02-67).
Assn. of Public Safety Communications Officials International (APCO) plans to solicit donations for Enhanced 911 Phase 2 readiness beyond $25 million contribution from Nextel. APCO created nonprofit foundation in Feb. to help public safety answering points (PSAPs) complete E911 upgrades. Foundation will accept “private, corporate and public donations on behalf of the public safety community” and distribute those funds to provide grants and technical support to PSAPs, APCO said in White Paper released Mon. “While $25 million is not nearly enough money to fund all PSAPs in the United States, it is a significant beginning and APCO is hopeful that other donations will come forward,” group said. In its original waiver request to FCC on Phase 2 E911 implementation, Nextel proposed contributing up to $25 million over 2 years to help public safety community finance upgrades. Outline of APCO plans to seek broader funding sources for new foundation came after National Emergency Number Assn. (NENA) in Feb. questioned whether Nextel donation would hamper independence of public safety groups. Grant of money directly to NENA or APCO would “call into question” independence of each group’s representation before FCC, NENA said at time. APCO said its directors would serve as board for new foundation and Foundation Advisory Committee would be created to oversee its operation. Committee will establish eligibility rules and procedures for grant program and will oversee technical support and education outreach, it said. APCO extended invitations to representatives of NENA, National Assn. of Counties, International Assn. of Chiefs of Police, International Assn. of Fire Chiefs, National League of Cities, National Governors’ Assn. and National Sheriffs’ Assn. to participate on committee. APCO said it planned to announce advisory committee membership by end of month.
Verizon Wireless is suing govt. to obtain remaining deposit from Jan. 2001 NextWave re-auction and is seeking ruling from U.S. Court of Federal Claims that auction “contract” for disputed licenses is void. Lawsuit came after FCC returned 85% of deposits from re-auction late last month but concluded winning bidders should continue for now to be held to nearly $16 billion in auction obligations (CD March 28 p1) until Supreme Court review plays out. Commission’s order described decision at that time as balancing act to preserve auction results pending Supreme Court review in NextWave case while returning most of deposits to bidders. In lawsuit filed Fri., Verizon Wireless also sought unspecified damages that it charged had been caused by “the FCC’s breach of the auction contract.” Litigation centers on $8.4 billion in auction prices for which Verizon Wireless successfully bid in Jan. 2001 re-auction and for which it technically still is liable. Verizon Wireless’s suit argued that it had suffered “substantial economic injury” as result of FCC’s contract “breach,” including effects on its credit rating and ability to borrow.
Three-judge panel of U.S. Appeals Court, D.C., seemed skeptical in oral argument Fri. on Global NAPS’ complaint that FCC should have preempted Mass. Dept. of Telecom & Energy (MDTE) in dispute over Verizon’s not paying reciprocal compensation for Internet-bound traffic (01-1192). MDTE in 1999 dismissed Global NAPS complaint on Verizon’s non- payment, and Global NAPS wanted FCC to preempt that decision and consider complaint itself. Commission turned down that request year later, saying it didn’t have authority to preempt MDTE in this case.
Panelists at NTIA Spectrum Management & Policy Summit Thurs. and Fri. differed on degree of overhaul needed in current govt. spectrum planning, but agreed fix was needed in system that bifurcated regulators along lines of govt. vs. commercial spectrum. “We are going to have to come up with some sort of integration of all these plans to satisfy a requirement,” said Frederick Wentland, NTIA acting asst. administrator: “How can we go about implementing a ‘national plan?'” Panels addressed how spectrum priorities for public safety and military users had been elevated since Sept. 11. Wireless industry officials, govt. spectrum users and regulators cited challenges on how to make regulatory process that’s not just reactive to user requests but can change allocations more quickly when business ventures fail. Sessions also tackled new questions raised if spectrum flexibility blurs lines between govt. and commercial users in terms of how regulators make decisions based on competing priorities.
FCC Chmn. Powell offered his own plan to spur national DTV transition Thurs., telling Sen. Hollings (D-S.C.) and Rep. Tauzin (R-La.) in letters that he would seek commitments from cable operators, broadcasters, satellite providers, equipment manufacturers and retailers for his voluntary, 5- part proposal. Powell said his plan wasn’t intended to be comprehensive or to resolve many of weighty issues, such as copyright protection and equipment compatibility, hampering transition. “Rather, it is intended to provide an immediate spur to the transition by giving consumers a reason to invest in digital technology today, while we continue to work on resolving the longer-term issues,” Powell wrote. One of major obstacles to DTV transition is lack of digital programming and low demand from consumers, many of whom find HDTV sets too costly. Aides to Hollings and Tauzin confirmed their offices had received and were reviewing Powell letter. Both lawmakers were traveling during congressional recess and couldn’t be reached for comment, staffers said. Letters were made public as many TV officials were leaving for NAB convention in Las Vegas.
Major reasons for breakup of WJXT (Ch.4) Jacksonville’s 53-year affiliation with CBS TV (CD April 4 p11) were network’s demands on program clearances and preemptions as well as cuts in compensation each year new contract would be in force, according to licensee Post-Newsweek Stations. WJXT agreed to one-year extension of affiliation last summer while negotiations for new long-term contract continued, and at time agreed to major reduction in network compensation for that year only. “This sends a message that same thing can happen to other major groups,” Post-Newsweek official said. Original news release on WJXT’s dropping CBS included friendly statement from Peter Schruth, pres. of CBS affiliate relations. “Corrected” Post-Newsweek release omitted Schruth statement and network later issued statement saying it was party that didn’t renew affiliation. WJXT official said station would double its news output and “significantly increase staff” when it became independent this summer.