FCC Chmn. Powell endorsed report by Computer Science & Telecom Board and said many of its recommendations were serving “as the backbone of the Commission’s broadband policy.” Report, Broadband: Bringing Home the Bits, said any broadband regulatory regime should defer new or existing regulations in early stages, promote facilities-based competition, encourage new entrants. “Consistent with your recommendations, the Commission will redouble its efforts to monitor the deployment of, and investment in, broadband- capable infrastructure,” Powell wrote in letter dated Mon. Report, which followed 2-year study, encourages govt. to monitor market developments rather than pursue policies that might inhibit the market. Report, originally released in Nov., was product of the Committee on Broadband Last Mile Technology and its staff.
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State commission telecom staffs gathered for NARUC winter committee meetings in Washington refused Sun. to support broadband-related policy resolutions on access to local rights of-way-and on pending EchoStar takeover of Hughes in satellite deal. But in unusual move for NARUC, some state commissioners pushing for those resolutions said they would ask Telecom Committee today (Feb. 12) to adopt resolutions despite staffs’ disapproval.
This is “do-or-die” year for telecom bills in state legislatures. Except in 2 states, all telecom bills pending in 2002 sessions must pass before this year’s adjournment or they're dead. Only in N.J. and Va. can bills from this year carry over to 2003. Accordingly, many state lawmakers are making swift decisions on early telecom measures even as floodgates have opened to new telecom-related legislation. In this report, we're updating status of previously-reported bills and noting significant new legislation that’s recently been introduced. Bills are grouped by subject, with advancing/defeated bills mentioned first in each group.
Broadband is being deployed “in a reasonable and timely manner,” FCC said in its 3rd annual report to Congress on availability of advanced telecom services. Report, which was issued Thurs. and includes data through June 30, 2001, said market for advanced services continued to grow, with both availability and subscribership increasing significantly. Report said number of subscribers had increased to almost 10 million, despite widespread economic downturn. Chmn. Powell said Commission wouldn’t flag in its efforts to promote broadband, despite positive steps cited in report. “It is one of our highest priorities and is never far from our thoughts as we decide communications policy,” Powell said.
Despite efforts by U.S. Trade Representative (USTR) to bring Mexico, Japan and S. Africa into compliance with World Trade Organization (WTO) telecom market-opening commitments, carriers and equipment suppliers told USTR that progress still lagged. In annual USTR comment period, communications companies also singled out new WTO member China as needing to step up reform efforts, particularly on challenges that loom for creating independent telecom regulator. USTR sought comments as part of annual review on effectiveness of U.S. trade agreements involving telecom products and services, including WTO basic telecom agreement. This marks first comment period on operation of U.S. telecom trade agreements opened during tenure of U.S. Trade Representative Robert Zoellick. Compared with last year, fewer comments focused on compliance with telecom market-opening commitments of European Union member states. Ranks of companies providing USTR feedback also didn’t include past commenters such as Global Crossing and Covad, both of which have entered Chapter 11 protection since last year’s comment period.
In latest bout over terrestrial repeaters used by satellite digital audio radio service (SDARS) providers, Wireless Communications Service (WCS) licensees argued that XM Satellite Radio already was using repeaters at lower power levels. In Feb. 4 filing at FCC, WCS licensees cited XM data recently released on repeaters operating below power levels of 2 kw. In at least one market, WCS said, XM had network that used only repeaters operating below 2 kw. WCS licensees have argued that SDARS licensees should be required to operate terrestrial repeater networks at power levels no greater than 2 kw. However, SDARS licensees said repeater network design relied on repeaters operating at up to 40 kw to provide proper synchronization. In filing, WCS licensees told FCC that “more than one out of every 4 markets in which XM has deployed repeaters” had no repeater operating above 5 kw EIRP. Filing was signed by AT&T Wireless, BeamReach Networks, BellSouth, Verizon Wireless, Wireless Communications Assn., WorldCom. WCS said: “Clearly there is no technical reason why all SDARS terrestrial repeaters could not serve their intended purpose while operating at much lower power levels than the SDARS licensees would lead the Commission to believe.” It said SDARS licensees had told FCC that single frequency network architecture of their systems required use of “much higher power repeaters to synchronize other repeaters in a market.” Referring to data available from Greenville, S.C., XM market, WCS licensees said that without power cap, XM was using network of repeaters that operated at less than 2 kw. Meanwhile, in Feb. 5 ex parte meeting that NAB said involved all 4 FCC commissioners and FCC staff, group outlined its concerns with SDARS proposal on power limits, including: (1) That it would allow local origination or insertion of locally targeted programming. “On its face, their current proposal appears to echo the SDARS licensees’ pledge not to transmit locally originated programming, but upon closer examination of their broad language, the SDARS proposed language does not preclude locally originated material.” It said that meant proposal ran counter to tentative FCC conclusion to bar use of terrestrial repeaters to transmit locally originated programming. (2) That it didn’t protect all incumbent services from blanketing interference. Broadcasters said they were especially concerned about potential interference to broadcast auxiliary service facilities operating in 2 GHz bands adjacent to SDARS repeaters. Filing said all terrestrial repeater specifications should be available to public on Internet. (3) That “the recent introduction of satellite radio underscores the urgency of terrestrial broadcasters’ digital conversion.” In-band, on-channel (IBOC) radio can deliver “high quality digital service,” so FCC was urged to expedite IBOC proceeding.
House Commerce Committee Chmn. Tauzin (R-La.) told investment community Wed. that he was enthusiastic about ultra-wideband (UWB) wireless technology and hoped FCC would look at it carefully. Proposal to permit UWB products to operate as unlicensed Part 15 devices is expected to be on FCC agenda at Feb. 14 meeting, he said in speech at Precursor Group conference in Washington. Tauzin said he visited UWB company Time Domain and was impressed by its founder Larry Fullerton, “an interesting guy who has been called the new Marconi.” Tauzin told investors UWB was trend to watch, explaining how technology goes through walls, could result in high-tech home security systems, communications devices for military, disaster recovery aids. “My hope, my prayer, to the Commission is to give it a good look,” he said. Tauzin said that taking up “twin issues” of privacy and security were among his Committee’s most important tasks this year. “The first battle line” is copyright, he said, “how to provide a digital product without losing value… coupled with security needs.” He said other “things to watch” were: (1) Efforts to develop privacy policy that would “enhance private efforts to self-regulate. (2) Broadband deployment. (3) Digital TV transition. (4) “Increasing capacity of wireless communications.” He also made pitch for Tauzin- Dingell bill, saying it was “not about pleasing the Bells” but rather was designed to “complete the Telecom Act.” Act didn’t contemplate growth in data communications and Internet, he said. As it is now, Act stymies development of high-speed data transmission because of restrictions on Bells, he said. Act’s mistake was to put FCC in charge of deciding when Bells could provide interLATA communication, which is required to offer broadband effectively, Tauzin said. Decision was left to “these bureaucrats whose raison d'etre is to regulate,” he said. “We left it to them to eliminate regulations, what were we doing? The FCC has become an agent for the past.” He said he thought Tauzin- Dingell would pass House and “then we will go and deal with Mr. Hollings [Sen. Hollings (D-S.C.) and chmn. of Senate Commerce Committee]), who has a different view.” Talking with reporters later, Tauzin said if Committee’s meetings with industry leaders on DTV transition didn’t result in agreement soon (CD Nov 30 p6), legislation to resolve issue probably would be introduced in April-May time frame. He said there had been progress in last 2 meetings and another was planned later this month. Meanwhile, spokesman for House Commerce Committee said it appeared House leadership would schedule vote on Tauzin-Dingell on either Feb. 27 or 28, slightly sooner than March projection given when bill was pulled from floor in Dec.
Shutdown of Assn. of Local TV Stations (ALTV) was made official Tues. with expected announcement that it would be closing its doors permanently in spring. While no date was given, Pres. James Hedlund told us “it will be immediately in terms of filing stuff [at govt. agencies and lobbying Congress]. I don’t know how long it will be before we turn the lights off permanently.” Move became necessary, ALTV board decided in conference call last week (CD Jan 29 p7), after loss of most of its dues-paying group members brought on by industry consolidation. Because of that, said ALTV Chmn. Ray Rajewski of Viacom TV Stations Group (which we're told planned to resign its membership this year), board “reluctantly concluded that a combination of events had conspired to put the long-term viability of ALTV in jeopardy.” Despite loss of more than half its annual dues income over last 2 years, Assn. still has $1.4 million surplus -- more than enough to pay off all obligations and provide severance for its 5 employees, we're told. Other than rent contract for Washington hq, ALTV’s largest outstanding obligation is $75,000 in legal fees owed NAB in their joint successful fight for satellite must-carry. ALTV was formed Aug. 7, 1972, in St. Louis as Assn. of Independent TV Stations (INTV) and chartered later that year in N.Y. Original purpose was to fight for lower AT&T transmission rates (before days of satellites) and to overcome recognized bias of national advertisers against buying time on independent stations. To that end, INTV at one time had marketing offices in N.Y. (where its hq also was located until 1979), L.A., Chicago and Dallas. Hedlund (onetime lobbyist for NCTA) has been pres. since 1990, succeeding Preston Padden, now head of Disney-ABC Washington office. Group changed its name to ALTV in 1996 to reflect fact that majority of its members were affiliated with fledgling TV networks. Often working jointly with NAB and/or MSTV, INTV/ALTV had several successes over years at FCC and in congressional lobbying efforts. “We should never lose sight of all the proud moments ALTV has had,” said Vice Chmn. Peter Walker of Tribune TV -- Assn.’s largest remaining dues-paying member by far. “For a small organization with a limited budget to have accomplished so much for so long is a real tribute to ALTV’s members and staff.”
In new effort to get FCC to return billions in NextWave re-auction deposits, Verizon Wireless asked U.S. Appeals Court, D.C., Tues. to “compel full compliance” with ruling that overturned FCC decision to cancel NextWave’s licenses. “Because the cancellation of NextWave’s licenses was unlawful, the re-auction itself was without lawful basis,” Verizon said in petition. “For the same reason, any continuing obligations on the part of the NextWave re-auction winners were also necessarily extinguished by this court’s ruling.” In Jan., re-auction winners petitioned FCC to refund $3.1 billion in down payments they said agency had been holding without interest since Feb. 2001. Verizon Wireless and 12 other carriers said that because settlement agreement on NextWave’s licenses expired Dec. 31 without Congress’s approval of settlement, agency should return money. Verizon’s latest request to D.C. Circuit came in wake of carriers’ expectations that Commission wasn’t planning to return deposits until after Supreme Court decided whether it would hear oral argument in NextWave case (CD Jan 30 p1). Verizon Wireless told court FCC’s refusal so far to “implement this court’s mandate” and return deposits meant carrier had lost more than $80 million in unpaid interest on its $1.7 billion down payment.
Although he signed FCC filing on Transportation Dept.- funded research on ultra-wideband, Stanford U. Prof. Bradford Parkinson said he wasn’t involved in conducting study, meaning his corporate ties to GPS developer Trimble posed no conflict. In Sept. 2000, Parkinson, who is widely viewed as “Father of GPS,” jointly submitted to FCC ex parte filing with other Stanford researchers outlining preliminary results of UWB tests conducted by GPS Research Lab at Stanford and funded by DoT. “We urge the Commission to proceed with great caution and deliberation,” said filing by 4 professors, including Parkinson, that described research challenges of analyzing UWB-to-GPS interference. But Parkinson said Mon. his role in research, which had been among studies cited by federal agencies concerned about potential of UWB emissions to cause harmful interference to GPS, was to evaluate results after test phase was complete. He said Assoc. Prof. Per Enge oversaw research itself.