FCC official differed with SBC Chmn. Edward Whitacre on how many performance measures company must meet each month as condition of its takeover of Ameritech. In speech at National Press Club May 16 (CD May 17 p5), Whitacre said SBC must meet 3 million measures. Asked about that, FCC official said total is 4,227, not counting any state requirements. Of that, SBC had to supply data on only 1,834 in March, latest month for which data are available, because there was no CLEC activity in other measurements. SBC spokesman stuck by original figure, saying Whitacre’s tally included not only merger conditions but also requirements related to Sec. 271 approvals. In addition, there are requirements set by state regulators and, when each set of requirements is multiplied by states and individual CLECs, number increases rapidly, he said. SBC files pages of information, displayed on FCC Web page, each month, spokesman said.
Country of origin cases
Legislation that would increase FCC enforcement authority might be tweaked to reflect concerns that proposed changes might not be sufficient to deter potential violators of telecom law, House Telecom Subcommittee Chmn. Upton (R-Mich.) said Thurs. at hearing on HR-1765. “We need to give [FCC] Chmn. Powell and his colleagues more ammo so that they can enforce the law,” he said. Upton bill would increase fines FCC could levy on violators to $1 million per violation, with $10 million cap, from current $120,000 limit. It also would extend statute of limitations on enforcement action to 2 years from one. Upton said he would assess recommendations of panelists testifying at hearing, who offered variety of suggestions on how to improve effectiveness of bill.
Senate Commerce Committee grilled FCC Chmn. Powell Thurs. about everything from agency’s administration of E-rate program to his views on broadcast ownership concentration and structural separation for Bells. Questioning took place at confirmation hearing for Powell and 3 other nominees to Commission, although most of time was spent with Powell as senators used session to delve into variety of FCC issues. Powell is undergoing confirmation for his recent 5-year nomination as chairman. Those nominated for new FCC posts are Kathleen Abernathy, former Bell company executive; Michael Copps, ex-asst. secy. of Commerce for trade development; and Kevin Martin, ex-aide to FCC Comr. Harold Furchtgott-Roth. Committee leaders said they tentatively planned to vote on confirmations May 24.
FCC, in notice of proposed rulemaking (NPRM) released Thurs., said it was weighing whether to do away with or alter requirements for analog service that have been applied to cellular carriers since 1981. Proposal examines continued need for mandating that cellular carriers provide AMPS-type (Advanced Mobile Phone Systems) analog service as long as they still have analog customers or roamers on their system. Citing major technical and market changes in last 2 decades, NPRM eyes broad array of regulatory requirements that date back to early 1980s start of cellphone service, which was limited to 2 carriers in each market.
Ore. Senate confirmed Democratic Gov. John Kitzhaber’s appointments of Roy Hemmingway and Lee Beyer to Ore. PUC. Hemmingway, governor’s energy policy and environmental affairs adviser, will take over PUC chair of Ron Eachus (D) immediately, while Beyer, a Democratic state senator, will replace Comr. Roger Hamilton in fall. Kitzhaber originally was planning to have both new members assume their positions late this year, but last month decided on quick transition for Eachus’s position because of latter’s public criticism of governor’s decision not to renominate him to agency.
La. House sent back to committee bill that would have made public officials’ e-mails confidential matter exempt from state’s open records law. Action makes it highly unlikely bill will pass this year. Measure (HB-1894) had problems in committee but was cleared only after amendment was added to sunset it in 2003. When bill came up on House floor, some members wanted amendments to make confidential any communications between public members and officials, but not among officials themselves, and to eliminate sunset provision. House couldn’t come to agreement on bill and voted 65-29 to refer bill back to committee. Legislative observers said bills referred back to committee in chamber of origin this late in session usually died.
More than 24% of E-rate funds that were committed to applicants in first 2 program years remained unused as of Jan. 2001, GAO reported to Appropriations Subcommittee on Commerce, Justice, State. In May 11 report, GAO said $880 million of $3.7 billion was unused, although efforts by E-rate administrators reduced total from 35% -- $1.3 billion -- unused at end of Aug. 2000. FCC and Universal Service Administrative Co. (USAC) have taken steps to reduce level of unused money, including canceling funding commitments if applicants don’t meet deadlines for receiving services associated with E-rate funds. Cancellations make more money available to other applicants, GAO said. FCC told GAO that as of April, figure had been reduced to $774 million. Unused E-rate funds are kept in interest-bearing account. E-rate funds, which are used to reduce cost of Internet projects, don’t go directly to schools and libraries. Instead they are sent to contractors as reimbursement for providing discounted services. GAO report also found that requests for services greatly exceeded $2.25 billion yearly cap in 3rd and 4th years. For 3rd year, more than $4.2 billion in requests were received. USAC estimated that 4th year requests would be nearly $5.2 billion, GAO said. USAC generally has had enough money each year to fund requests for telecom services and Internet access, which are considered first priority. However, E-rate program could support only small part of requests for internal connection, which are lower priority, GAO said. Nearly $2 billion of $3.2 billion worth of requests for internal connections in 3rd year have gone unfunded, agency said. GAO also questioned procedure USAC used to keep track of funding requests. For example, data don’t reflect original amount of funding requested by applicants, only amount approved after application review, GAO said. It prepared similar report for Sen. Rockefeller (D-W.Va.) that offered more detailed state-by-state breakdown of funding by category of service.
If FCC decides to act on network affiliates’ petition it should do so in context of rulemaking, Big 4 networks said in latest letter to FCC Chmn. Powell. Networks repeated claim that original Network Affiliated Stations Alliance (NASA) filing and latest letter (CD May 4 p9, March 9 p2) were flawed and created “confusion.” Networks also repeated that they had violated no FCC rules in their relations with affiliates.
Eight Mich. CLECs plus CLEC trade groups CompTel and ASCENT urged Mich. PSC to “carefully consider” last week’s Ameritech notice of its intent to file with FCC for Sec. 271 interLATA long distance authority by Oct. CLEC interests said Ameritech’s filing (Case U-12320) “unilaterally announces a new plan of action” for PSC’s review of 271 application that disregards process and timetable that PSC and all other parties agreed to in Feb. 2000 for 271 review. CLECs said new procedure Ameritech was attempting to establish didn’t include list of mandatory conditions PSC said last year that Ameritech must meet before it sought agency’s endorsement. CLECs criticized Ameritech for deciding to file its entire body of checklist compliance evidence at once instead of taking items one at time, as PSC originally intended. Ameritech indicated compliance filing would be made this week. CLECs asked PSC to: (1) Change company’s new proposal, defer compliance filing until 3rd-party operation support system (OSS) test neared completion. (2) Allow CLECs at least 6 weeks for comments at each comment-reply cycle in schedule instead of Ameritech’s proposed 4 weeks. (3) Reject carrier’s proposed changes in KPMG Consulting’s OSS test evaluation process. (4) Set date certain for company to file 3 months’ actual performance data.
Craig McCaw told Nextel Mon. that through his holding company Eagle River Investments he planned to exercise additional stock options in July and Aug. McCaw family agreed to invest up to $1.16 billion in Nextel equity in April 1995, including option to buy additional shares at predetermined prices. Options were granted by Nextel and Motorola in conjunction with McCaw family’s original purchase agreement. Eagle River said McCaw-controlled entities planned to file notice with SEC of their plans to put collar on “a small percentage of their shares” through prepaid forward contract. Under contract, entities would agree to deliver presubscribed number of shares at predetermined price at future date. Eagle River said that structure “allows Mr. McCaw’s enterprises to enjoy the benefit of an increase in the stock price and limits his downside risk.” McCaw also said he was contemplating distribution of some Nextel shares owned by family’s holding company, Digital Radio, to McCaw family members.