FCC at agenda meeting March 14 will address cable operators’ concerns about regulatory classification of Internet delivered over cable. Commission said Thurs. it would consider declaratory ruling and Notice of Proposed Rulemaking (NPRM) on legal classification and appropriate regulatory framework for Internet service when delivered over cable. At moment, that’s considered “cable service.” In fact, Supreme Court, in case on pole attachments earlier this year, dealt with issue and some justices expressed dismay that Commission had not yet classified service (CD Jan 17 p1). Industry insiders believe Commission is likely to reclassify it as “information service,” which would protect it from being called “telecom service” and all common carrier regulations that would naturally follow. Cable executives have been lobbying FCC intensively on almost daily basis in recent weeks in hope that if it chose to call it “information service,” agency would ensure that local franchising authorities (LFAs) would have no regulatory jurisdiction over high-speed data. Item had been widely expected by cable industry, especially since Commission opened proceeding addressing Internet via wireline at its last agenda meeting. Meeting is scheduled for 9:30 a.m., Rm. TW-C305, FCC hq. Commission also will consider: (1) Order on streamlined procedures for transfer of control applications by domestic telecom carriers. (2) Order and rulemaking dealing with charges for changing end users’ presubscribed interexchange carriers. (3) Notice of Proposed Rulemaking seeking comments on how to address interference to public safety systems in 800 MHz band. Last fall, Nextel submitted White Paper to Commission that proposed reconfiguration of operations at 700 MHz, 800 MHz, 900 MHz and 2.1 GHz to mitigate interference that public safety licensees were receiving from wireless operators such as Nextel. Proposal has been expected to seek comments on wider range of potential solutions than the one put forward by Nextel. (4) Further action on new Multichannel Video Distribution and Data Service (MVDDS) in 12.2-12.7 GHz band. Meanwhile, FCC originally planned, then postponed, consideration of proposed amendment of Parts 2 and 25 of Commission rules to permit frequency sharing between nongeostationary orbit fixed satellite systems with GSO and terrestrial systems in Ku-band frequency. It also delayed review order that allows terrestrial companies to use DBS satellite spectrum in 12.2-12.7 GHz band that included applications of Northpoint, PDC Broadband and Satellite Services.
Country of origin cases
Bills addressing spam and telecom taxation have passed in S.D., N.M. and Utah. S.D. Gov. Bill Janklow (R) signed bill prohibiting anyone from sending unsolicited e-mail ads (spam) if recipient had asked for messages to stop. New law (SB 183) provides penalty of $500 per offending message up to maximum $10,000. It also allows ISPs and other parties unwillingly involved in spamming to sue originating parties in civil court. New law prohibits sending any e-mail that contains false or misleading information in subject line and bans use of anyone’s Internet domain name without permission. N.M. Gov. Gary Johnson signed HB-299, which conforms state tax law to federal Mobile Telecom Sourcing Act. New law taxes wireless services at customer’s place of primary use, typically home or workplace, regardless of where call actually occurs. Utah legislature passed similar wireless taxation bill (SB 153), which Gov. Michael Leavitt (R) is expected to sign.
Commerce Secy. Donald Evans repeated Wed. his promise that Commerce Dept. would be “proactive” in stimulating broadband demand. “Broadband is delivered to homes but consumers are not picking it up,” he said. About 70 million homes have access in U.S. but “very few actually use it, about 20%,” he said: “We need to do what we can about the demand side” of broadband access. Innovations such as broadband are “absolutely vital” to U.S. economy, Evans said, with IT alone accounting for 2/3 of productivity growth and 1/4 of economic growth. “Over the next 10 years, broadband is expected to add half a trillion dollars -- $50 billion a year -- to the economy.” Building national broadband network will create more than 1 million new jobs, he said.
FCC’s Wireless Bureau outlined parameters of technical inquiry on issues affecting rollout of Enhanced 911 services for wireless callers. In Nov., FCC named former Office of Engineering & Technology Chief Dale Hatfield to head inquiry. Among technical and operational issues that bureau said Tues. it would examine as part of inquiry were: (1) Claims by wireless carriers that network equipment and location-capable handsets weren’t available in time to comply with FCC’s original Phase 2 deployment timelines. FCC granted waivers to 6 national wireless carriers last fall, revising deployment schedules for Phase 2 capabilities. (2) Contentions by carriers that they had difficulty obtaining necessary LEC facility upgrades for Phase 1 deployment, issue that has potential to emerge under Phase 2 roll-outs. Last fall, both public safety groups and carriers such as Sprint PCS highlighted role of LECs in closing E911 connection among wireless subscribers, carriers, databases and public safety answering points. In some cases, LEC cooperation was described as “missing link” in E911 situations. “The focus of this inquiry will be on the future of wireless E911 deployment, including any obstacles to deployment and steps that might be taken to overcome or minimize them,” FCC said. At close of Hatfield’s investigation, he will issue report of his finding that FCC plans to release for public comment. Bureau said it would use findings to evaluate potential obstacles to E911 deployment, consider methods to address these obstacles and “accelerate deployment.” Point of inquiry is to “obtain an expert, informed unbiased assessment” of such issues, FCC said. Scope of investigation will be as broad as needed with information gathered from wide array of sources, including technology and equipment vendors, carriers, public safety community, carriers. Information to be evaluated will include technology standards issues, hardware and software development and supply conditions. FCC has created docket for this inquiry (02-46), in which comments can be submitted.
Cal. PUC administrative law judge recommended interim reduction averaging 25% in Pacific Bell’s interim recurring rates for certain unbundled network elements (UNEs). Suggested cut would reduce unbundled loop to average $8.56 monthly. Interim UNE reduction would remain in effect until PUC completed UNE rate review prompted by petition last year from AT&T and WorldCom seeking 36% cut in Pac Bell loop and unbundled local switching rates, based on their cost analysis using HAI Model 5.2a. ALJ’s recommended interim discounts were based on some modifications in HAI costing model to reflect Cal. network conditions. ALJ said interim reductions were needed because of delays in proceeding (Cases 01-02-024, 01-02-035, and 01-02-034) due to “inadequacies” in Pac Bell’s cost filings and need to examine competing cost models. ALJ said CLECs presented enough evidence to warrant “reasonable presumption” that UNE costs had declined since rates originally were set. ALJ recommended that if interim reduction were approved, Pac Bell be required to substitute lower interim monthly UNE rates in all its interconnection agreements pending adjustments once final rates were set. PUC is scheduled to consider recommendation at its April 4 meeting.
FCC could have notice of proposed rulemaking out for comment as soon as early March soliciting feedback on how to address interference issues at 800 MHz. Industrial Telecommunications Assn. Pres. Laura Smith said expectation now was that NPRM would address broader set of issues than those raised in Nextel White Paper given to FCC in Nov. Nextel submitted proposed plan on dealing with interference concerns of public safety licensees at 800 MHz by realigning frequencies at 700, 800 and 900 MHz and 2.1 GHz. Proposal would entail commercial wireless operators’ providing public safety community with up to $500 million for costs of retuning. “It’s a great proposal if you're public safety and you're Nextel, but if you're anybody else you end up getting hurt,” Smith said at media lunch Tues. “There are better alternatives out there. There is a problem out there, we agree.” While there isn’t disagreement about interference, both public safety and private wireless operators are experiencing it, she said. Although Nextel isn’t transgressing FCC rules, interference still has been problem in bands such as 800 MHz because technologies there don’t co- exist well together, Smith said. Private land mobile industry, including ITA, has been working on alternative proposal, which will be released during public comment period for NPRM, she said. Besides Nextel White Paper, National Assn. of Manufacturers (NAM) has submitted proposal on possibilities for rebanding, without relocating users such as private wireless systems. Smith said that besides citing those proposals, she would like NPRM to describe interference problems and seek broader range of solutions. Resolution of interference problems will take years, “because you are talking about reconfiguring an entire band,” Smith said. “There are thousands of licensees in there.” In other areas, NPRM released earlier this month that set out service rules for 27 MHz being transferred from govt. to nongovt. services was somewhat disappointing for private wireless, Smith said. “It doesn’t look like it’s going to be as helpful as we wanted it to be originally,” she said. FCC had 1999 policy statement that indicated agency would provide 10 MHz to land mobile communications service as part of this proceeding, Smith said. Instead, under proposal, land mobile communications will get potential 6 MHz, which has to be auctioned for fixed and mobile services, she said. “Depending on how they open up that auction, we could get nothing,” she said. “If they open it up to all the commercial providers, then this industry will be unable to compete against the larger providers.” Land mobile industry also has access to 2 MHz at 1390-1392 MHz, but that’s open to large range of providers, she said. “We kind of were hoping for a land mobile communication service allocation, which we didn’t really get.”
FCC imposed $84,000 fine on SBC for violations of Commission’s colocation rules. Agency reduced fine from $94,500 imposed by FCC Enforcement Bureau in May after SBC sought review. Violations stemmed from rule that requires ILECs to post notices on Web sites of central offices where they have run out of colocation space. Lower fine reflects 24 central offices that weren’t listed, down from original 27 cited in May.
PASADENA -- Perfect system to protect digitized content doesn’t exist and never will, panel of technology experts said here, but adopting reasonable approach to digital rights management (DRM) will benefit both consumers and content providers. Eric Grab, DivX Networks dir.-engineering, told Entertainment Technology Alliance conference that best solution was to develop software-based security system: “If your protection is based in hardware, it’s harder to update the system and takes more time. Software can keep you ahead of the curve.”
Qualcomm confirmed its previous forecast for 2nd quarter, saying it expected earnings of 20 cents per share in period, excluding its strategic initiatives program. Company earlier predicted earnings of 19-21 cents per share in quarter. Qualcomm Chmn. Irwin Jacobs said 2nd-quarter targets for phone chip shipments were coming in at “upper end” of original estimate of 13-14 million units and CDMA2000 1X shipments now were expected to reach 1 million more units than early estimate.
FCC last week told U.S. Appeals Court, D.C., that it opposed request by Verizon Wireless to compel “full compliance” with same court’s ruling that had overturned results of re-auction of NextWave licenses. In effort to compel Commission to refund $3.1 billion in down payments from auction, Verizon Wireless earlier this month had asked court to clarify that re-auction was unlawful. In filing opposing that request, FCC said: “Verizon has acted consistently to preserve the auction and it should not now be allowed to reverse course.” Commission said it was “committed to resolving promptly” Verizon’s refund request and court didn’t have to intervene. Court’s original NextWave decision didn’t compel relief that Verizon Wireless seeks, Commission argued. “In reality, Verizon wants not enforcement of the mandate but an ordinary writ of mandamus,” FCC told D.C. Circuit. “The standard for such relief is high -- clear entitlement -- and Verizon has not met it.” Commission noted that it had warned Verizon “well before” re- auction of NextWave’s PCS licenses that there was potential for litigation-related delays in licensing and agency’s “intention to retain auction deposits until all of the proceedings were final, which they are not.” FCC has petitioned U.S. Supreme Court to review D.C. Circuit’s decision. “Verizon entered the auction with open eyes and was willing to face that risk (and presumably made bids reflecting that very risk factor),” FCC said: “It should not now be excused because the gamble did not pay off as expected.” Commission said it had Verizon’s refund request under “active consideration.” As soon as “practicable,” it said it planned to take whatever steps were reasonable to protect its interests and those of re-auction participants. Also, if Supreme Court doesn’t grant certiorari in NextWave case, “the deposits will be returned as soon as possible,” agency said.