FCC at our deadline Thurs. approved 2 key Bell applications for Sec. 271 authority to enter long distance business: (1) It voted 4-0 to approve BellSouth’s application for Fla. and Tenn., last remaining states in its territory without Sec. 271 authority. (2) It voted 3-1 to approve SBC’s application for Cal., biggest market in country. Comr. Martin dissented on SBC vote. Comr. Adelstein didn’t vote.

If FCC were to adopt “interference temperature” standard for measuring spectrum interference at device level, newly emerging technologies could be accommodated quickly without threatening incumbents, FCC official said Tues. Bryan Tramont, FCC Chmn. Powell’s senior legal adviser, in a Communications Daily audio conference Tues. said Nov. report from FCC’s Spectrum Policy Task Force, while staff-written, “largely reflects the chairman’s views.”

NTCA urged Sen. Burns (R-Mont.), who’s expected to become Communications Subcommittee chmn., to pursue legislation that will open more spectrum for rural service. In Dec. 13 letter to Burns, NTCA said FCC was establishing policies that “impede” rural carriers from accessing wireless spectrum and urged him to schedule hearing on wireless issues. NTCA cited bill (S-2075) introduced in recently concluded session by Sen. Baucus (D-Mont.) that would give “teeth” to 1934 Communications Act rural mandate on wireless service. “An important part of a well-thought-out national spectrum management policy would be ensuring that rural Americans have access to advanced wireless-based services on an equitable basis with urban Americans,” NTCA letter said. “Rather than facilitating their access to wireless licenses, the FCC has established policies that for the most part impede rural carriers from accessing wireless spectrum.” NTCA said Baucus’s proposed Rural Electromagnetic Spectrum Access Act of 2002 (RESA) would have required FCC to make spectrum licenses covering rural service areas more readily available and accessible to entities that were committed to providing service to rural areas. “It is vital to address rural carriers’ access to spectrum in any legislation you may develop in the forthcoming Congress to address our national spectrum management policy,” letter said. NTCA urged Burns to include rural perspective on any spectrum panel. In audio conference sponsored by Communications Daily’s parent Warren Communications News (CD Dec 4 p1), Burns aide Mike Rawson said Burns was considering “hybrid” approach in spectrum reform. Rawson said Burns viewed auction model as “fundamentally broken” and was considering system that would require participants to prove effectiveness of business model before entering in system. He said idea was to prevent companies from having to invest massive amounts of capital into spectrum. Rawson said new system could raise funds based on percentage of gross revenue.

New Zealand govt. is seeking comment on whether to update its copyright laws for Digital Age. In consultation paper released last week, Ministry of Economic Development (MED) raised issues related to copyright law and digital technology and floated proposed responses. Two key questions must be answered, MED said: (1) Whether Copyright Act of 1994 needs to be amended at all given its recent enactment and fact that it already covers new technologies such as computer programs and cable TV. (2) Extent to which “digital is different” -- that is, whether digital challenge is so different from analog technologies that different approach to copyright is warranted. Most controversial area is technological protection measures (TPMs), MED said. There, govt. is asking for comment on whether act’s section on copy and access protection should provide specific access protection that doesn’t directly prevent copying of copyrighted materials. MED said it preferred not to legislate against circumvention of TPMs that controlled only access. Ministry also asked whether copyright owners should have right of action against actual use of circumvention device or -- as govt. prefers -- whether liability should be restricted to provision of means of circumvention, as law already provides. MED said it wanted to “avoid the apparent anomaly created by copyright legislation in Australia and the United States, and in the European Union Copyright Directive. Under these regimes, while the act of circumvention is not expressly prohibited, or is permitted to allow the exercise of permitted acts or specific exceptions, the manufacture or provision of devices or information to facilitate that circumvention is prohibited.” Consultation also seeks input on exceptions to TPM requirement and whether violations should be criminalized. Other issues MED aims to address include adequacy of New Zealand’s existing reproduction and communication rights, proper extent of ISP liability for copyright infringements and exceptions to copyright rights. Comments are due Feb. 21 -- victoria.pearson@med.govt.nz.

European Commission (EC) said it would present new innovation policy early next year, addressing concerns raised by EC based on results of 2002 European Innovation Scoreboard (EIS). Report innovation in European Union (EU) was low compared with U.S. and Japan. “Urgent action is needed to boost innovation,” Enterprise & Innovation Society Comr. Erkki Liikanen said. EU spokeswoman said that after new EC recommendation was approved by Board of Commissioners, it would be put on agenda of next Competitiveness Council scheduled for March.

Software company that leveraged a first-strike copyright lawsuit against Hollywood into sales of tens of thousands of units of movie-copying software now is seeking to crystallize consensus for public policy that simultaneously fights piracy and protects fair use across digital media. 321 Studios planned to launch ProtectFairUse.org over weekend as forum meant to bridge usually polarized copy-protection views and build grassroots lobbying platform in favor of fair-use bills by Reps. Boucher (D- Va.) and Lofgren (D-Cal.) when they're re-introduced next Congress.

FCC is likely to loosen some unbundled network elements (UNE), said AT&T Gen. Counsel James Cicconi during debate on broadband at Federal Communications Bar Assn. conference Fri. Cicconi said noteworthy part of ruling will be “how the Commission views the important problems of switches,” he said, adding Bell companies have been unwilling or unable to facilitate the “hot cut” process.

FCC opened multiple notices of inquiry (NOIs) Wed. on wireless policy, including on whether existing spectrum policies impeded provision of wireless service to rural areas. That notice, adopted unanimously at agenda meeting, also examined whether changes were needed “to promote more extensive availability of spectrum-based services for rural consumers,” Wireless Bureau Chief Thomas Sugrue said. In separate inquiry, FCC sought feedback on its analysis of competition in commercial mobile wireless sector, including whether figures should be collected in new wireless areas such as Wi-Fi deployment.

EchoStar agreed Tues. to terminate proposed agreement to take over Hughes Electronics and subsidiary DirecTV. Industry sources cited negative responses from Dept. of Justice and FCC as possible catalysts for decision to cancel deal rather than complete reapplication process at 2 agencies. Under settlement, EchoStar paid $600 million termination fee and agreed Hughes would retain ownership of PanAmSat.

EchoStar agreed Tues. to terminate proposed agreement to take over Hughes Electronics and subsidiary DirecTV. Industry sources cited negative responses from Justice Dept. and FCC as possible catalysts for decision to cancel deal rather than complete re-application process at 2 agencies. Under settlement, EchoStar paid $600-million termination fee and agreed Hughes would retain ownership of PanAmSat. As result of decision, EchoStar will take $700-million writeoff in 4th quarter because of breakup fee and merger expenses.