ANAHEIM -- Attorneys for major operators appeared to have single mantra at Western Cable Show here this week: FCC must provide regulatory certainty if MSOs are to offer more services. Four MSO gen. counsels on panel said their companies were having trouble setting business plans because govt.’s rules were uncertain. They cited questions on classification of high-speed data as either cable or telecom service, digital dual must-carry, ownership caps and pole attachment rates as some of issues pending.
Country of origin cases
Boeing spokesman said discussions were “suspended” with 3 U.S. airlines on forming joint venture that would provide airline passengers with in-flight 2-way broadband connectivity to email, the Internet, corporate intranets, live TV, entertainment. In June news conference, United, American, Delta and Connexion by Boeing announced they had signed letter of intent to pursue forming new global business services for commercial aircraft. Proposed venture would have been owned jointly by Boeing and 3 airlines, with Boeing serving as major shareholder with overall management responsibility. All 3 airlines pulled out because of financial difficulties they faced in wake of Sept. 11 terrorist attacks, Boeing said. Connexion is moving forward, and company will continue working with airlines starting with meetings scheduled for Jan., spokesman said: “We are ensuring we're ready to go as soon as the airline markets recover.” Boeing wouldn’t speculate on any other airlines’ ability to invest, but said it wouldn’t object to equity negotiations with other groups outside original 3 and was actively discussing possibilities with other carriers. Company also has seen “significant rise in interest” in executive service side of aviation industry, specifically from VIP and govt. aircraft. There also is major interest in Connexion as security enhancement for aircraft, spokesman said. He told us that soon after attacks, company wouldn’t feel effects of airline industry’s scaling back plane orders because most of airplanes that would have Connexion installed were in retrofit market. Airlines “continue to see value that Connexion service by Boeing can provide… There is no correlation between [airlines’ review of order positions] and Connexion.” Boeing said Thurs. that primary market for service still was retrofit aircraft, but in future it would offer service to customers as they ordered new aircraft.
Deputy Defense Secy. Paul Wolfowitz asked Commerce Secy. Donald Evans to advocate delay in final regulatory decision on ultra-wideband (UWB) until “at least February.” Expectation of some industry observers had been that UWB could be taken up at FCC’s Dec. 12 agenda meeting, although timing was unclear because NTIA still must submit final input to FCC on rulemaking, sources said. FCC Chmn. Powell told House Appropriations Subcommittee earlier this year that Commission could issue UWB rulemaking by year-end, although he said at time that agency was awaiting final evaluation from govt. on UWB interference issues (CD May 23 p7). In letter to Evans last week, Wolfowitz said DoD’s review of preliminary draft of FCC’s UWB rules “indicates they will not provide adequate protection for GPS and other critical DoD systems… They also raise significant national spectrum management policy issues such as the intentional operation of nonlicensed devices in nationally restricted bands and in internationally designated passive-only bands.” Several sources said item on UWB began circulating on 8th floor at FCC earlier this week.
SAN FRANCISCO -- Cox Communications said cable companies, creditors and @Home Corp. Wed. were making progress toward deal to head off possible shutdown Fri. of high-speed Internet access to millions of residential cable modem customers. U.S. Bankruptcy Court Judge Thomas Carlson is scheduled Fri. to hear @Home’s request for discretion to ignore agreements to connect cable operators to Internet and to consider @Home bondholders’ request that service be stopped unconditionally.
Advanced Communications (AC) is continuing legal fight to win extension of time to launch and operate DBS satellite. Company based in Little Rock filed appeal in U.S. Appeals Court, D.C., to rescind Oct. 18, 1995, FCC order that denied it extension. Company is seeking redress in court after losing lower court battle. Respondents in case include DirecTV, Dominion Video, EchoStar, MCI and U.S. Satellite Bcstg., each of which opposed AC’s petition during FCC proceeding. Advanced argued that decision violated federal law and was arbitrary and capricious because no other party previously had been denied extension for DBS system and FCC since had continued practice of granting such requests. Appeal comes as govt. evaluates proposed merger of DBS operators EchoStar and DirecTV. Should AC prevail, it could become DBS competitor for merged EchoStar-DirecTV unit.
Mo. PSC extended until Dec. 22 its suspension of proposed AT&T tariff to introduce $1.95 monthly “in-state connection fee” applicable to long distance customers that didn’t subscribe to AT&T’s local exchange service. AT&T in Case TT-2002-129 originally wanted fee to take effect in Sept. PSC said it needed more time to study issue. Mo. Office of Public Counsel opposes fee as unjust, unreasonable and discriminatory. Public Counsel Martha Hogarty characterized tariff as tactic to pressure PSC to cut intrastate access charges, but AT&T said fee was necessary because of higher costs associated with provision of intrastate long distance service. AT&T has implemented similar fees in at least 8 other states.
When 10 of the world’s biggest movie studios, broadcasting and cable networks banded together earlier this month to sue Sonicblue (CD Nov 1 p1), their goal wasn’t simply to stop potential copyright infringement. They also are seeking to stop Sonicblue and its new personal video recording (PVR) device, ReplayTV 4000, from reshaping entertainment industry as it’s known today. In legal filings and interviews, plaintiffs said they feared that ReplayTV 4000 could undermine advertising that’s foundation of their businesses. PVR has 2 features that have brought wrath down upon corporate parent Sonicblue: (1) It can skip commercials. (2) It allows users to transmit broadcasts and movies to up to 15 other people through broadband connection.
VoiceStream told FCC it planned to submit petition for “limited relief” of priority access service (PAS) rules so it voluntarily could offer priority services to national security and emergency personnel. Information came in comments VoiceStream submitted on Verizon Wireless waiver request to FCC for implementing wireless PAS, in which Verizon said commercial, off-the-shelf technology wasn’t available that met agency guidelines. National Communications System (NCS), which issued request for immediately available PAS capability for Washington, N.Y. and Salt Lake City, had indicated earlier this month that Verizon would be tasked to provide short-term capability. VoiceStream Vp-Legislative & Regulatory Affairs Brian O'Connor told us this week that carrier was surprised to read earlier this month that Verizon Wireless had received contract from NCS for initial PAS rollout. (Both Verizon and NCS later had softened their statements to indicate that Verizon had been chosen but final agreement was still in works.) VoiceStream understands that award to Verizon won’t be exclusive, O'Connor said. “We will also have our opportunity to pursue the government contracts,” he said, noting that when press first reported award to Verizon, carriers such as VoiceStream still were in discussions with contract manager DynCorp on parts of process such as obtaining FCC waivers and required govt. clearances, O'Connor said. VoiceStream said it supported ability of wireless carriers “to obtain expeditious waivers of the Commission’s requirements under the present circumstances to respond to urgent government needs.” It said it was “more important than ever at the present time to maintain the voluntary provisioning of priority access by CMRS operators that wish to provide such service to the government.” Carrier asked FCC not to take steps that would result in promulgation of “specific technical solutions and administrative requirements” with which all participating wireless carriers must comply. VoiceStream said it had provided proposals to NCS using GSM technology for Washington and N.Y. on both immediate basis, meaning within 60 days, and near term, meaning by end of next year. VoiceStream said after meeting with its vendors that it had determined it immediately could roll out “more full-featured priority access capability” than it had proposed originally. VoiceStream has system, Enhanced Multi-Level Precedence and Preemption (eMLPP), that provides lineups of priority calls “for the next available resource when radio or network resources are not available.” VoiceStream said it would offer that on subscription basis. Once subscriber has activated account, that offering won’t require carrier to do anything in case of emergency because service would be “always on.” Users that have handsets with those signaling capabilities will be able to select particular priority level on per-call basis. Handsets aren’t yet available commercially although VoiceStream said it expected them soon from Ericsson. Until then, callers can use precedence level stored in their SIM (Subscriber Identity Module) card in particular phone.
Satellite Bcstg. & Communications Assn. (SBCA) filed motion Nov. 13 with 4th U.S. Appeals Court, Richmond, Va., for delay in start of FCC must-carry requirements because of pending litigation involving constitutionality of law. SBCA said issue probably wouldn’t be decided before Jan. 1 deadline for implementation of requirements. Appeal said if must-carry requirements took effect before case was resolved, it would violate First Amendment rights of satellite carriers. “The recognition that time is short and that much is at stake was the basis for the satellite carriers’ opposition to a U.S. motion to hold in abeyance the petitions for review,” Assn. said. Constitutional issues at stake could go to Supreme Court, SBCA said. It said it didn’t seek relief from District Court because it would be “impracticable” and “time is of the essence.”
FCC named former Office of Engineering & Technology Chief Dale Hatfield Tues. to head inquiry into technical and operational issues involving deployment of Enhanced 911 (E911). Inquiry was among steps that FCC said it would take to examine rollout of E911 when it granted waiver requests of 5 national wireless carriers and began enforcement investigations against Cingular Wireless and AT&T Wireless (CD Oct 9 p1). FCC said inquiry would look into information from technology vendors, network equipment and handset-makers and public safety officials. It said that while parameters of inquiry would be shaped in coming weeks with help of Hatfield, at outset it would focus on technology standards issues, hardware and software development and supply conditions. Separately, FCC opened comment period for petitions filed by Cingular, Nextel and Verizon Wireless seeking reconsideration of certain parts of orders on their E911 Phase 2 waiver requests. Petitions contend that Commission improperly adopted strict liability standard for future compliance.