SAN JOSE -- Telecom industry urgently requires resolution of policy uncertainties on broadband and local competition to remove major obstacle to revived investment, CEOs told business conference here Fri. AT&T’s David Dorman and Covad’s Charles Hoffman spoke separately to Bay Area Council, business public policy group.

Several new and unfamiliar faces were present at Senate Commerce Committee hearing Tues. on telecom competition (CD Jan 15 p1) that featured all 5 FCC commissioners. Hearing was well attended by senators, including many who don’t often attend telecom-related hearings, and featured 2 new members of committee, Sens. Sununu (R-N.H.) and Lautenberg (D-N.J.).

MIAMI BEACH -- Don’t expect regional Bells to roll out broadband service any faster or innovate any quicker even if they gain their expected regulatory relief from FCC or Congress this year, one top Washington policy analyst warned this week. Despite persistent lobbying claims of Bells, Legg Mason analyst Blair Levin predicted phone companies would keep lagging behind their cable rivals in wiring U.S. because Bells’ broadband pipes still would cost far too much to lay down.

FCC hopes to issue public notice on comprehensive nationwide agreement to streamline tower siting decisions next month, Wireless Bureau Commercial Wireless Div. Chief William Kunze said Fri. Related tower siting policies will be among division’s priorities for this year, including issues on migratory birds, Fish & Wildlife Service requirements and overall processes in that area, he said. Kunze spoke at FCBA Wireless Practice Committee lunch at which chief of Auctions & Industry Analysis Div., Public Safety and Private Wireless & Policy also discussed their 2003 agendas.

United Church of Christ (UCC) Communications Office filed new challenge at FCC on WorldCom’s transfer of licenses from its prebankruptcy entity to its debtor-in-possession unit. Last year UCC urged FCC to block WorldCom’s request to transfer those licenses and authorizations, saying it wasn’t qualified to hold them because of false reports to SEC, which ran counter to character standards of Communications Act. Wireless Bureau denied informal objection last month, saying assignment of licenses simply marked change of status in which licensee held licenses. UCC filed petition for partial request and reconsideration with Bureau last week. It asked that FCC reconsider and clarify in supplemental order “the disqualifying character issues raised against WorldCom and determine whether WorldCom is fit to remain a Commission licensee at the next procedurally available opportunity” when WorldCom has another application for review before agency. “WorldCom’s corporate fraud clearly demonstrates that WorldCom lacks sufficient character qualifications to remain a licensee of the Commission,” UCC said. It said Wireless Bureau hadn’t ruled on merits of its informal objection because WorldCom’s assignment applications were deemed “ministerial,” which didn’t give FCC appropriate procedural venue to consider character issues. “According to long-standing Commission policy, disqualifying allegations such as those raised by UCC against WorldCom, however, do not simply vanish,” UCC said. Before FCC takes action in future on substantive applications or authorization requests filed by WorldCom, it “must deal with the disqualifying character issues raised against WorldCom,” UCC said.

FTC urged House Commerce Committee Wed. to give it power to levy fees on telemarketers to fund proposed do-not-call registry. Commerce Committee spokesman Ken Johnson said House could take action to implement funding mechanism as early as today (Thurs.) through continuing resolution. During “briefing” today on Capitol Hill, FTC Chmn. Timothy Muris told committee it would take about $16 million to fund list and if Congress didn’t act soon to give FTC funding authorization, Commission wouldn’t be able to implement list this year. Committee Chmn. Tauzin (R-La.) said he was concerned about potential jurisdictional issues that could hamper FTC’s implementation of list, but Johnson said Tauzin agreed to limit authorization to 1-2 years. During briefing, Tauzin asked Muris about reauthorizing system after period of time, to which Muris replied: “It would be reasonable to assess the system after it’s up and running.” Tauzin told Muris: “You understand there are some concerns about authorizing fees for a system that’s not yet set up.”

IDT Winstar and Verizon told FCC they had settled dispute over former’s acquisition of assets of fixed wireless provider that filed for Chapter 11 protection in 2001. But Verizon said in Jan. 2 filing that its counter-petition for declaratory ruling would remain alive because issues could recur under similar scenarios. IDT Winstar and Bell companies had disagreed in last year over terms of interconnection agreements to which RBOCs must be held for fixed wireless provider that has emerged from Chapter 11. In April, IDT Winstar filed emergency petition for declaratory ruling, raising concerns about “immediate threats” by Verizon and Qwest to deny or delay providing facilities. Winstar contended Communications Act and agency rules mandated that those facilities and services be provided to company. But Bell companies contended federal bankruptcy law required IDT Winstar to assume and cure past debt on contracts assumed by pre-Chapter 11 Winstar. Verizon told Commission its process shouldn’t be used to allow carriers in bankruptcy to avoid requirements of bankruptcy court and that Winstar had period to assume or reject existing services or facilities and to make “appropriate cure” for services assumed from pre-Chapter 11 company. IDT Winstar and Verizon said their notice informing FCC of settlement didn’t affect relief that Winstar sought against other LECs in its original petition.

Facing May deadline for digital conversion, public broadcasters have largely come up empty in their digital carriage negotiations with cable operators in more than 3 years of talks following the successful carriage deal with Time Warner in Sept. 1999. Only other MSO to sign voluntary carriage agreement with PTV stations was Insight Communications in April last year.

In 3-2 vote, FCC late Mon. allowed Sec. 272 separate long distance affiliate requirements of Verizon in N.Y. to sunset, prompting first joint partial dissent by Comrs. Copps and Adelstein. Under Telecom Act, Bell companies that win Sec. 271 authority in state must provide in-region long distance service through separate affiliate in that state for 3 years after approval. Verizon received long distance approval in N.Y., which was first Sec. 271 application to win approval in nation, on Dec. 22, 1999. After 3-year requirement, it’s up to Commission whether separate affiliate obligations should remain. While agency allowed most of N.Y. obligations to sunset, it also issued order addressing broader question whether it should allow Sec. 272 duties to sunset within 3 years as provided by Telecom Act or should be extended by agency. Legg Mason said in research note Tues. that order indicated FCC would go state-by-state “rather than give Verizon and the other Bells regionwide relief when one of their states hits the 3-year mark.” Bell companies had proposed regionwide deregulation as way to trim redundant operations and costs, “but under the FCC order will have to settle for more gradual relief,” Legg Mason said. Order said FCC planned to open rulemaking “in the coming months” seeking comment on whether there still was need for dominant carrier regulation of Bell company in-region, interLATA services provided outside of Sec. 272 separate affiliate. “We will take further action to address these issues in the future as appropriate,” Commission said. It noted that Telecom Act “clearly contemplates” sunset of separate affiliate and other requirements of Sec. 272 if FCC doesn’t extend them. Commission said it was “firmly committed to ensuring compliance” with nondiscrimination requirements of Sec. 272(e). “In particular, we note that the Commission may order an independent audit or otherwise investigate compliance with these requirements,” it said. In narrower public notice that terminated Verizon’s separate affiliate requirements in N.Y., Copps and Adelstein dissented, saying action was done “without the necessary analysis by the Commission.” They wrote in joint separate statement: “In this era of corporate governance problems and accounting depredations, we find it incredible that the Commission would eliminate a tool to provide safeguards and accounting transparency without even addressing the arguments raised in the record.” They said Congress charged FCC with determining whether structural, accounting and auditing safeguards of separate affiliate remained necessary to “prevent anticompetitive discrimination in the market.” They said agency failed to consider whether there was need for those or other safeguards. Copps and Adelstein particularly stressed extent to which they said FCC had failed to consider views of states, noting that N.Y. regulators had concluded that eliminating those requirements would be premature. “Since the state commissions are engaged in the Section 271 process from the beginning, and are our partners in the effort to carry out the directives of Congress, it is particularly important to weigh their considerations, and particularly that of the affected state, as we move to this next phase,” they said. Comr. Martin issued separate statement but didn’t dissent. He said decision to allow separate affiliate requirements to sunset without analysis or discussion was “odd” because FCC previously had issued notice asking whether it should extend Sec. 272 safeguards. Martin said he would have preferred separate order that set out agency’s analysis and rationale for granting relief to Verizon “rather than remain silent.” Legg Mason said that as first major FCC vote by Adelstein, deference that his joint dissent gave to state issues was significant and could have impact on other proceedings, including Triennial Review proceeding.

FCC announced Mon. it had approved Qwest’s petition to provide interLATA long distance service in Colo., Ia., Ida., Mont., N.D., Neb., Utah, Wash., Wyo. Unanimous approval of company’s Sec. 271 application marked victory for Qwest, which withdrew earlier filings covering those 9 states after questions arose about its accounting practices. But FCC stressed company must continue to meet 14-point checklist of Sec. 271 or Commission would turn to its enforcement tools to compel compliance, including penalties or suspension of approval.