The FCC rejected a challenge by ARRL, the National Assn. for Amateur Radio, which sought review of a Commission order that allowed operation of unlicensed fixed, point-to-point transmitters at 24 GHz. The ARRL petition filed last year had sparked protests by Apple Computer, Cisco, Microsoft and T-Mobile USA, which argued the proposal would create a “bureaucratic nightmare” for the FCC by significantly altering the regulatory regime that had given rise to cordless phones and broadband wireless networks. ARRL contended that unlicensed point-to-point operation in that band at certain permissible power levels would create substantial interference potential to licensed amateur services. The agency disagreed and said it found the rest of the group’s petition “to be without merit.” The Commission affirmed its core technical finding that devices with field strengths up to the level outlined in the rules that met directional antenna requirements could operate under Part 15 rules at 24 GHz. “Devices operating within these requirements will not increase the interference potential to licensed amateur services in the band,” the FCC said. The use of a directional antenna would change the shape of the radiated field, but wouldn’t increase the total geographic area covered by the signals, it said. The order cited other proceedings that “find that a directional antenna requirement would ensure that the area over which harmful interference can occur is equivalent to what would be caused by a transmitter using an omnidirectional antenna operating at a lower output level.” The FCC said ARRL hadn’t offered new information on the interference potential. “Bare disagreement, absent new facts and arguments, is insufficient grounds for granting reconsideration,” the agency said. Because it didn’t agree with ARRL’s arguments on significant interference potential, the Commission said it didn’t have to address the statutory argument raised by ARRL on Sec. 301 of the Communications Act. The group had contended that Sec. 302(a) gave the FCC jurisdiction to limit the interference potential of radio frequency devices of all types at the manufacturing stage. If the agency can’t ascertain that unlicensed Part 15 devices that seek to operate in bands allocated to licensed radio services won’t cause harmful interference, those devices have to be licensed under Sec. 301, ARRL said. “The technical operating parameters adopted in the report and order are designed to ensure that the interference risk will not be increased to licensed amateur services and we affirm that the rules adopted in the report and order are reasonable for regulating the unlicensed operation that was authorized under Part 15 in this proceeding,” the order said.

SBC filed an application with the FCC Thurs. to offer long distance service in its remaining 4 Midwest states -- Ill., Ind., Ohio and Wis. -- delivering more than 175 boxes of regulatory material to the Commission. SBC said it had received “strong endorsements” from PUCs in 3 of the states and “a preliminary indication” from the Ind. Utility Regulation Commission that it would support SBC’s long distance entry. “This multistate filing is the climax of 7 years of effort to bring competition, lower prices and more choice to consumers and businesses in our Midwest region,” SBC Pres. William Daley said. The 4 states, plus Mich., comprise the old Ameritech territory before the SBC-Ameritech merger.

The Commerce Dept.’s proposal to move the NTIA into the Technology Administration (TA) received a lukewarm reception on Capitol Hill Thurs. Neither House Commerce Committee Chmn. Tauzin (R-La.) nor Senate Commerce Committee Chmn. McCain (R-Ariz.) expressed much interest in the proposal, which was submitted by Commerce Secy. Donald Evans.

TechNet ranked Mich. the #1 state in enacting policies that spurred broadband deployment and demand, the group said in its new State Broadband Index. It ranks the top 25 states based on their rights-of-way and zoning laws, the ability of private sector companies to deploy cables and networks for broadband in their state, and any initiatives under way that will raise broadband demand in their state. Second place went to Fla., although Mich. had nearly double its score, with Mo. 3rd. Cal., home to Silicon Valley, finished 14th.

The FCC’s International and Wireless bureaus concluded NextWave had met regulatory conditions on its C-block licenses on foreign ownership requirements. The conditions required NextWave to either restructure and bring its indirect foreign ownership in line with the 25% benchmark of the Communications Act or demonstrate that it would be in the public interest to exceed that mark. The bureaus’ clearance on the foreign ownership question appeared to be the last regulatory hurdle that NextWave had faced at the FCC on its licenses. Sec. 310(b) of the Act set a 25% benchmark for indirect investment by a foreign entity in a common carrier radio license, but gave the FCC discretion to allow higher ownership stakes if they were deemed in line with the public interest. Based on NextWave’s original 1997 petition for a temporary waiver of its restructuring options under the foreign ownership limits, the FCC held that NextWave’s indirect foreign ownership complied with the Commission’s foreign participation order. At that time, it said NextWave’s level of foreign equity share ownership was less than 27%, and more than 95% of its total equity ownership could be traced to U.S. citizens and citizens of other World Trade Organization countries. “We find no basis to attribute to NTI [NextWave] a level of foreign voting interests that is higher than the level of attributable foreign equity,” the Commission said. In a letter to the FCC in May 2003, NextWave said its Series A stock, which represents legal and actual control of the carrier, was held by U.S. citizens or companies, with a “de minimis” share owned by foreigners. The FCC also concluded that NextWave’s current level of indirect foreign equity and voting interests fell below the 25% benchmark for foreign ownership. It said NextWave’s ownership was divided, with 80.9% of issued and outstanding shares held by domestic interests, 14.5% by foreign individuals or companies and 4.6% by U.S. brokerage houses on behalf of individuals or firms whose citizenship wasn’t known to NextWave. “NextWave appreciates the attention the Commission and its staff have given to this matter in recent months, and we're glad that it’s now put to rest,” a company spokesman said. Petitions previously filed by AT&T Wireless, Verizon and VoiceStream questioned NextWave’s foreign ownership status, but the carriers later rescinded those filings. Questions also were raised in 1997 when 2 failed C- block bidders, Antigone Communications and PCS Devco, asked the FCC to dismiss NextWave’s conditional license approval based on alleged violations of foreign ownership limits. Before the FCC had taken final action on that petition, the agency cancelled NextWave’s licenses for nonpayment. The U.S. Supreme Court earlier this year upheld a U.S. Appeals Court, D.C., ruling that had held that the FCC had erred in cancelling the licenses.

In first round of court battle between state of Wash. and videogame interests, latter declared victory as week came to close. Interactive Digital Software Assn. (IDSA) and VSDA praised ruling by U.S. Dist. Court Judge Robert Lasnik, Seattle, who granted preliminary injunction against enforcement of law that would make it crime for retailers to sell videogames to minors that contained violent acts against law enforcement officers. In decision, Lasnik said “plaintiffs have raised serious questions regarding the constitutionality of House Bill 1009 and the balance of hardships tip in their favor.”

The U.S. Appeals Court, D.C., denied challenges to the FCC’s payphone rules by both the Bell companies and payphone service providers. The Bells had argued that the FCC didn’t have authority to regulate the payphone lines because they were intrastate. The payphone providers supported the rules but wanted them applied to CLEC lines as well as Bell lines. In a decision released Fri. (02-1055), the court said the Telecom Act clearly authorized the Commission to regulate Bell intrastate payphone line rates, but not those of non- Bell LECs.

Harvard law professor has laid out elaborate proposal to scrap Internet copyright and anticircumvention protection for music and movies in favor of legalizing unlimited copying, use and redistribution.

NTIA Dir. Nancy Victory plans to step down from the agency next month after nearly 2 years in the post, she confirmed Thurs. Hers is the agency’s 2nd major departure since May, when Deputy Dir. Michael Gallagher left to become deputy chief of staff for policy to Commerce Secy. Donald Evans. Gallagher hasn’t been replaced, and plans for an interim successor to Victory or as deputy weren’t clear. In an unrelated development, a House subcommittee omitted any funds in the Commerce Dept.’s Technology Administration (TA) FY 2004 budget approved Wed.

AT&T Wireless and Verizon Wireless filed a petition for review Tues. with the U.S. Appeals Court, D.C., against the FCC decision in Jan. allowing mobile satellite service (MSS) operators to use an ancillary terrestrial component (ATC). The petition was filed the day after petitions for reconsideration were due at the FCC on the issue (CD July 9 p5). The wireless carriers’ charged that allowing MSS providers to provide terrestrial service with satellite spectrum was unlawful: “Converting a satellite-only authorization into a license for mixed satellite and terrestrial use was a major license change requiring the FCC to conduct an auction under Section 309(j) of the Communications Act.” The carriers said they were “aggrieved” by the ATC order, not only as competitors in the mobile telephony market but also as licensees that had to pay for spectrum. Mobile Satellite Ventures Vp Lon Levin said the companies were exhibiting consistent behavior by “challenging us from going forward in every forum they can find.” Meanwhile, he said, issues raised in petitions for reconsideration by Cingular and CTIA were “creative ways to kill the MSS business. They keep on coming up with more and more ways to stop us from going forward without any regard for the fact that the satellite business is challenging.”