N.C. Utilities Commission (NCUC) ruled calls to CLEC virtual local numbers such as foreign exchange (FX) numbers are local calls for reciprocal compensation purposes. Agency’s ruling was part of arbitration order settling interconnection contract impasses between WorldCom and BellSouth. BellSouth contended that calls originating in one local calling area and terminating in another couldn’t be local traffic by definition and must be treated as interexchange. It said regulators in Ill., Me. and Tex. all concluded that FX numbers weren’t local exchange, Conn. tentatively concluded same thing, and FCC ruled calls to FX number of out-of-state business were interstate traffic, not local. But NCUC sided with WorldCom in ruling that classification of call as local or toll depended solely on exchange prefix dialed by caller, not physical location of receiving party, as long as caller and recipient were in same LATA. NCUC said interLATA FX numbers would be interexchange, not local, for intercarrier compensation purposes. On related question, NCUC declined to rule on appropriate compensation treatment of Internet Protocol telephony, saying there was too much uncertainty surrounding issue. On other issues, NCUC said: (1) BellSouth didn’t have to unbundle operator or directory assistance services if it provided WorldCom with selective routing enabling CLEC to reach alternative operator service provider. (2) BellSouth must provide unbundled dedicated transport along routes where facilities existed, but wasn’t obligated to construct new dedicated transport routes for CLEC. (3) BellSouth was entitled to be paid for any extraordinary functions it performed if requested by WorldCom to deal with 3rd party carrier for reciprocal compensation. (4) Reciprocal compensation for Internet-bound local calling would be subject to later true-up once FCC decided on compensation method for Internet-bound calls. (5) BellSouth must notify WorldCom if it sold property on which WorldCom had installed facilities. (6) BellSouth must notify NCUC if it intended to disconnect WorldCom’s wholesale services for nonpayment at same time notice went to WorldCom. (7) WorldCom had right to opt into terms of any other BellSouth-CLEC interconnection agreement, but BS wasn’t required automatically to provide WorldCom with copies of other interconnection agreements it made.
Country of origin cases
N.Y. state law banning telemarketing calls to persons on state “no call” list took effect Mon., with more than one million residents’ names already registered, about twice original estimates. No-call list law was passed last year and state began signing up phone subscribers in Oct. Under law, telemarketers have until end of April to remove persons on state registry from their calling lists. Names on registry must be deleted from new lists before they are used. Violators face fines up to $2,000 per improper call.
U.S. residents are buying Canadian satellite equipment that can receive channels that have no rights to distribute programming in U.S., said Peter Classon, pres. of Canada’s 2nd largest satellite TV distributor, Star Choice Communications. “It’s a reverse gray market,” he said, referring to more typical schemes of Canadians’ using U.S. addresses in order to receive U.S. channels. Classon said his company just became aware of problem and was investigating how widespread the practice was and what remedies were available: “We're gathering facts as to whether or not there’s an awful lot of receivers activated at one address.”
BBC will help sponsor MIT’s Media Lab Europe under 3-year agreement, terms not disclosed. Other sponsors include companies such as Ford, Sega, Shell. Under agreement, sponsors gain access to Media Lab output and talent, both from new lab in Dublin and original MIT Media Lab in Cambridge, Mass.
Major telecom companies and satellite interests are expected to challenge plan proposed by ICO-Teledesic Chmn. Craig McCaw to allow him to develop terrestrial cellular service using radio spectrum reserved for satellite systems. New ICO first offered hint of plan in unpublicized March 8 letter to FCC Chmn. Powell that suggested New ICO, which recently emerged from bankruptcy, would have to fold without substantial new spectrum approval from U.S. and global regulators (CD March 15 p3). Satellite rivals question whether proposed plan by New ICO will attract enough new customers to drive rates down far enough so price of phones also drops. If prices fall, McCaw believes satellite operators could make better use of spectrum and subsidize cost of building network for rural services, which is major priority at Commission. However, cellular carriers are expected to balk at plan because many of them had to pay for their spectrum at auctions and they believe ICO proposal would seem to give away valuable spectrum free to telecom competitors.
Viacom’s attempt to avoid complying with 35% national broadcast ownership cap shouldn’t be allowed by court because it’s procedurally flawed and because court isn’t likely to overturn cap, FCC and Network Affiliated Stations Alliance (NASA) said in separate briefs. Viacom is asking U.S. Appeals Court, D.C., to stay ownership cap, citing court decision voiding 30% national cable ownership cap. Stay would prevent Viacom from having to divest stations by May 4.
NTIA and FCC released final reports Fri. providing details on challenges to sharing, segmenting or clearing Dept. of Defense- occupied bands and MMDS and ITFS spectrum, setting stage for what some see as need for high-level 3-way talks on possible compromise among FCC, Pentagon and Commerce Dept. DoD evaluation, appendix to NTIA report, said terrestrial military systems couldn’t vacate 1.7 GHz until 2010 and legacy space systems would need access until 2017, dates much later than timelines in federal 3G studies. Still, several industry sources said they were heartened by what they called realistic relocation cost estimates that NTIA provided for 3 options, which range from $2.2 billion to $4.5 billion. NTIA report laid out 3 options for band sharing or segmentation, including recently emerged alternative that involves out-of-band pairing and phased-in migration of incumbents. Despite alternatives, “this does not necessarily mean that the government band is the right choice for 3G,” Naval Rear Adm. Robert Nutwell said at NTIA briefing. He called on wireless industry to make “better case” for 3G spectrum needs.
Telecom reform package proposed to Minn. legislature by Gov. Jesse Ventura (I) appears dead for this year. Today (March 30) is procedural “pass or die” deadline for bills to clear committees in chamber of origin, but Ventura’s package (HF-510/SF-554) isn’t on schedule for House or Senate committee action. Ventura’s bills have seen only lukewarm legislative and public support and strong lobbying against proposals by local exchange industry. His legislative package featured tax, rate and regulatory incentives intended to ensure future universal service, bring down access charges, reduce long distance rates, bring about more competition, promote deployment of high-speed data services to rural areas of state. Proponents such as state Sen. Steve Kelley (D-Hopkins) said Ventura Administration did poor job of selling reform plan’s benefits while incumbent telcos played on fears of higher local phone rates. Kelley also faulted administration for attempting to impose more regulation when fewer rules were what was needed to stimulate telecom investment. However, failure of legislative package doesn’t mean issue is dead. Ventura’s Deputy Commerce Comr. Tony Mendoza said administration would consult with PUC to see whether some portions of Ventura’s plan could be implemented via PUC regulations.
FCC Chmn. Powell called on Congress to bolster agency’s enforcement powers, measure he said was necessary to protect consumers as agency executed streamlined business plan that’s “aligned with the realities of a dynamic and converging marketplace.” He also told House Telecom Subcommittee at hearing Thurs. that legislative approval was necessary to carry out his bureau restructuring plan, which still was being formulated, and his “policy vision” of making FCC more “efficient, effective and responsive.” Powell said FCC, if given sufficient enforcement capabilities, would guarantee “fairness to all, and allegiance to none,” but warned potential regulatory violators that Commission likewise would levy severe penalties. “If you cheat, I'm going to hurt you, and hurt you hard,” he said.
Apparently beating its fellow MSOs to market, Charter Communications intends to introduce advanced digital cable set-top boxes in at least 2 major markets this fall. Charter spelled out its plans to deploy Motorola’s DCT-5000 set-tops Thurs. while announcing interactive TV (ITV) software pact with Liberate Technologies. Charter, which now has more than one million cable subscribers using low-end digital boxes, said it would rely on Motorola’s advanced digital set-tops and Liberate’s ITV software to offer customers such “Tier 2” services as full Internet access, interactive programming guide, TV-based e-mail, ITV portal services, streaming media. “You will see deployment this year,” said Stephen Silva, Charter senior vp-corporate development & technology.