Wireless carriers are backing request to FCC that seeks clarification about when public safety answering points (PSAPs) are ready to receive data under Enhanced 911 rules. Sprint PCS in Nov. filed petition for reconsideration seeking changes to documentation requirements for PSAPs that FCC had created. Cingular Wireless also has filed petition for reconsideration, challenging overall decision by Commission on PSAP readiness and citing procedural and substantive grounds. Richardson, Tex., originally asked FCC to better define what constituted valid PSAP request for E911 service. Oct. decision by FCC now under challenge had said that PSAP submitted valid E911 request: (1) If any upgrades needed on PSAP network would be completed within 6 months of request. (2) If PSAP had made “timely request” to LEC for trunking and other facilities needed for E911 data to be transmitted. Assn. of Public-Safety Communications Officials-International (APCO), National Emergency Number Assn. and National Assn. of State Nine One One Administrators told FCC in comments that they disagreed with changes Sprint sought on LEC readiness part of order. Sprint said PSAPs should be required to document that necessary LEC upgrades will be completed within 6 months of E911 data request or LECs should publish their Phase 2 database upgrade schedule. “Such a LEC publication requirement should not, however, alter the basic obligation of carriers to respond to a PSAP request, so long as the PSAP can document that a database upgrade request has been submitted to the relevant LEC.” But CTIA said it agreed with Sprint petition to ensure PSAP request for Phase 2 E911 service was granted after PSAP verifies it was ready to use information. “Requiring wireless carriers to deliver Phase 2 services when the PSAP will not be capable of utilizing the data within the 6-month implementation period is a waste of resources,” CTIA wrote. Group said “despite the best intentions of the PSAPs,” they have record of not being able to receive and use Phase 1 data even if mechanism is in place for recovering costs of system upgrades. Even in states where PSAPs have access to state funding for preparing for E911 compliance, “it is anticipated that a majority of states have or will raid funds dedicated to wireless 911 to cover budget deficits,” CTIA said. To make sure carriers have protection from spending “unnecessary resources” and that PSAPs will be ready to use E911 data, CTIA said FCC should give wireless operators more time for installation when PSAP “fails to substantiate Phase 2 readiness.” CTIA agreed with Sprint proposal that Phase 2 service only can become operational when automatic identification location database capabilities needed from LECs have been upgraded for Phase 2. Nextel also filed comments siding with Sprint, saying valid PSAP request for E911 has to demonstrate technical upgrades by wireless carrier, PSAP and LEC. “If any prong is not in place, Phase 2 E911 cannot be deployed,” Nextel wrote. VoiceStream also stressed in comments that FCC can’t assume that because PSAP has requested database upgrade from LEC, that system will be in place in 6 months.
Country of origin cases
Qwest said it would send revised privacy notices to customers in all its states with their Feb. bills that would clarify its plans to share customer account information with other companies. Qwest said new notices, which would serve as “reminder” to customers, would inform customers clearly that carrier wouldn’t share account information with any entity outside Qwest’s “family” of companies -- its affiliates and companies with which it had marketing agreements for its services.
Justice Dept. (DoJ) and FTC officials will meet with Senate staff Wed. to discuss potential delineation of merger review authority between 2 agencies (CD Jan 18 p3). Agreement had been expected to be announced Thurs., but announcement was canceled abruptly. It would give DoJ jurisdiction over media merger reviews, prospect that concerned many consumer advocates. It also concerned Sen. Hollings (D-S.C.), along with secretive nature in which agreement was negotiated, Hollings aide said. By virtue of being chmn. of both Senate Commerce Committee and Appropriations Commerce Subcommittee on Justice, State and Judiciary, Hollings has congressional oversight of both agencies, aide said.
Theodore Ullyot adds title of senior vp-gen. counsel, AOL Time warner Europe… Maura Dunbar, ex-ABC, named senior vp-original programming, Hallmark Channel… J.W. Braukman, ex-GE, becomes CFO, BTI Telecom… Norman Klugman, ex- WorldCom, selected to succeed Ilan Slasky as Net2Phone CFO, effective in 4th quarter… Janelle Slipp named dir.- affiliate sales, Trinity Bcstg. Network.
Pentagon has plans to develop satellite broadcast programming consisting of one-hour video and 90-min. “Town Hall” broadcasts within contiguous U.S. (CONUS), but will distribute as yet unidentified content only through limited number of TV stations. Programming would be broadcast via Ku/C-band satellite transponder, which then would be distributed “to between one and 5 selected television stations in the CONUS,” Dept. of Defense (DoD) said in presolicitation notice published Wed. Several broadcast industry sources said they were unaware of DoD initiative but would consult with counsel to learn more about program and determine why distribution would be limited to handful of stations. DoD source said that satellite transmission would be newest means of distribution but that other broadcasts of DoD material already were taking place. She said content of satellite programming would consist of array of topics that she declined to identify. DoD announcement said satellite transmissions would be made “with 2-way audio return from each station.” Despite 2-way communication capability and Town Hall format, DoD source said there were no plans to introduce interactive Q&A element to programming. She declined to provide detail on what DoD meant when it referred to Town Hall broadcasts. Pentagon said it expected to make 2-4 video broadcasts per month and up to three 90-min. transmissions per year. Broadcasts will originate from either Air Force Studio, Army Studio or Press Briefing Facility at Pentagon in Arlington, Va. Meanwhile, DoD is accepting bids for satellite service until Feb. 13. It will award contracts of 2-4 months in first 7 months of program, with option for extension. Vendors must be capable of providing fiber link from Pentagon fiber switch to uplink site. -- 703-428-1121.
Eldorado Communications, which competed with NextWave for PCS licenses in 1996 auction, filed opposition at FCC Thurs. to request by re-auction winners that their deposits be returned. Eldorado, which had returned to FCC licenses it won in original C-block auction, took issue with attempt by carriers to rescind deposits on re-auction licenses “but not, apparently, their bids.” Wireless carriers that won NextWave licenses in re-auction year ago asked FCC this month to refund $3.1 billion in deposits that agency had been holding without interest for nearly a year. Eldorado last year had opposed settlement involving licenses reached by NextWave, wireless carriers and U.S. govt., that fell apart late last year when it failed to win congressional approval. In opposition to refund request, Eldorado objected to what it called carriers’ efforts to maintain claims to licenses but to receive refunds of down payments. “Only then, some of them claim, will they be willing to begin settlement negotiations anew,” opposition filing said. Refund at this point would go against FCC precedent and “perpetuate the special treatment afforded these companies when the Commission agreed to the terms of the settlement,” Eldorado said. “There is nothing in the instant petition to suggest that the return of these payments would, in and of itself, do anything to advance the public interest.” Eldorado CEO Will Yandell said: “This is a classic case of wanting to have your cake and eat it, too, only this time it’s the public’s cake.” Eldorado argued that NextWave bid up prices on C- block licenses and FCC later gave carriers options to return licenses “at substantial cost.”
African Heritage Network changed its name to The Heritage Networks (THN) to better “reflect [its] renewed commitment to providing high-quality programming” to ethnic and multicultural audiences. Goal is to become “niche market leaders” for syndicated TV programming, THN Pres. Frank Mercado-Valdes said. He said THN formed 2 new divisions: Heritage 215 Entertainment, headed by Emmy Award winner Cindy Mahmoud, to produce original programming, and Heritage/Baruch TV Distribution as syndication and niche programming arm, with Edwin Baruch as pres.
Supreme Court ruled 6-2 Wed. that cable operators were entitled to low, regulated rates when they used utility or telephone poles to string fiber carrying data. Ruling in FCC v. Gulf Power and National Cable Telecom Assn. v. Gulf Power means Gulf Power and other utilities that own poles can’t charge what they describe as “market rates” for space on those poles -- as high as $50 per pole per year. That compares with yearly charges of $5-$6 at current regulated rates. Cable companies had said if they were charged higher rates they would have no choice but to pass through those costs to their customers, perhaps raising rates as much as $2 per month per subscriber. NCTA hailed decision, saying it would make Internet access more affordable and make broadband deployment more attractive to companies. American Cable Assn. (ACA) also praised decision, saying it would save many independent cable operators in rural areas from going out of business. FCC Chmn. Powell said if decision had gone other way it would have “derailed the broadband revolution.”
XO Communications said it reached definite agreement with buyout firm Forstmann Little and Telefonos de Mexico aimed at keeping XO out of bankruptcy. Deal, originally announced in Nov., calls for Forstmann and Telmex to each invest $400 million in XO in return for each acquiring 39% of company. Rest of equity will be held primarily by debt holders. XO said it was in discussions with lenders and debt holders to modify its secured credit facility and to restructure its senior notes as required by agreement. Meanwhile, XO said it had reached “forbearance agreement” with lenders that had agreed not to call it into default or make other demands.
Netro outlined plans Tues. to buy AT&T Wireless’s fixed wireless assets -- formerly known as Project Angel -- for $45.5 million. Proposed deal includes $16 million in cash and $29.5 million in Netro shares and would close fixed wireless chapter for AT&T Wireless that originally started under AT&T Chmn. Michael Armstrong. Netro will provide AT&T Wireless with 8.2 million common shares, which were trading at $3.60 Tues. Transaction includes AT&T Wireless’s fixed wireless development team, license for intellectual property, equipment and “proprietary software assets.” Companies said they expected deal to close in 30 days, giving AT&T Wireless 13.5% of Netro. They said AT&T Wireless’s fixed wireless operations had 47,000 subscribers in 10 metro markets, providing voice and high-speed data services. When acquisition closes, 126 AT&T Wireless employees will join Netro. AT&T Fixed Wireless Vp-Engineering John Saw will become senior vp-engineering for Netro and Lewis Chakrin, exec. vp-corporate strategy & planning for AT&T Wireless, will join Netro’s board. Netro said it planned to sell former AT&T Wireless fixed wireless offering into its installed customer base and target markets. It said it planned first to target offering to international carriers that owned 3.5 GHz licenses. “Netro will begin to adapt the technology for the international market immediately and expects to generate revenue from product sales in the second half of 2002,” it said. Netro Chmn. Gideon Ben-Efraim said that “in the last several months, we had reviewed several strategic initiatives and decided to focus on the next- generation, low-frequency fixed wireless access market to address the international emerging markets that require a voice and data wireless solution to complement a limited wireline infrastructure.” In decision that company described as bittersweet in Oct., AT&T Wireless had indicated it was exiting fixed wireless business, move that entailed taking $1.3 billion charge. AT&T had used Wireless Communications Services licenses to deploy Project Angel fixed wireless broadband effort. Project was marketed as using single remote unit to provide wireless local area network, 4 phone lines and high-speed Internet access.