Qwest state regulators are moving ahead with their investigations into allegations that company had engaged in discriminatory dealmaking with CLECs, while AT&T attacked Qwest for seeking national ruling from FCC on what sorts of deals with CLECs must be publicly filed with states.

Sen. Breaux (D-La.) and Senate Minority Whip Nickles (R- Okla.) unveiled their broadband bill Tues. that would eliminate regulatory distinctions between Bells and cable industry in provision of high-speed Internet services. Biggest change to bill since it began circulating recently is amount of time it would give FCC to create parity in broadband regulations (CD April 23 p1). Rather than imposing 90-day limit on Commission, Breaux-Nickles sets 120--day maximum for FCC action. Breaux said he had spoken with Senate Commerce Committee Chmn. Hollings (D-S.C.), who agreed to hold hearing on bill. Breaux reiterated that although Tauzin-Dingell data deregulation bill (HR-1542) would create such regulatory parity, it couldn’t pass in Senate.

Citing U.S. Appeals Court, D.C., decision involving biennial review of broadcast ownership rules, CTIA petitioned FCC late Mon. to eliminate “unnecessary regulations” in policy areas such as local number portability (LNP) and Enhanced 911 (E911). Earlier this year, Commission appealed to D.C. Circuit, seeking rehearing of Fox ruling that overturned FCC’s cable-TV station cross-ownership ban (CD Feb 20 p1). Decision is seen as potentially changing burden of proof FCC must use in determining whether rules should be kept or eliminated under biennial reviews. FCC Chmn. Powell has raised concerns that biennial review standard could evolve under ruling from Commission’s having to prove why it eliminates regulation to also include why rules should be kept (CD Feb 21 p1). CTIA Pres. Tom Wheeler said Tues.: “The Fox decision gave clear direction to the FCC: Prove a regulation is vital and indispensable or get rid of it.” Wheeler said CTIA wanted to “help” FCC meet new standard by “jump-starting the 2002 biennial review process.”

Minn. PUC administrative law judge was scheduled to open hearings today (April 30) on allegations Qwest made secret “sweetheart deals” with certain CLECs in return for their dropping their opposition to Qwest regulatory initiatives including long distance entry. Complaint (Case P421/C-02- 197) filed by Minn. Dept. of Commerce, acting as consumer advocate, charged that Qwest had failed to file deals with at least 3 different Minn. CLECs in which they received special discounts, billing arrangements or service priority in return for their dropping opposition to Qwest-U S West merger and Qwest interLATA long distance entry. Dept. accused Qwest of using deals to silence critics of its merger and its long distance entry, and its failure to file deals with PUC meant other CLECs couldn’t opt into those terms; Dept. sought penalties up to $200 million. Qwest denied wrongdoing, saying agreements weren’t subject to disclosure because they were confidential settlements of disputes over rates and terms in their interconnection agreements. Company also said provisions for CLECs to drop their opposition to its regulatory petitions weren’t unusual, but were meant to ensure that CLECs didn’t try to re-litigate disputes under guise of opposing Qwest initiatives. Some CLECs have raised issue of allegedly preferential unfiled Qwest deals with selected CLECs in Ariz., Colo., N.M., Ore., Utah. Those state commissions are investigating. Qwest said it had asked FCC to determine whether it had violated Telecom Act in preference to undergoing state-by-state litigation, but FCC hasn’t said whether it will act.

With deadline 2 months away for FCC action on Verizon Wireless petition for relief on local number portability (LNP), 8th floor has yet to reach final agreement on right time period for delay, according to many sources. Verizon petitioned July 26 for forbearance on requirement that commercial mobile radio service providers support wireless LNP in top 100 metropolitan statistical areas by Nov. 24. FCC must act on forbearance petition within one year of filing date or forbearance is granted automatically unless Commission votes 90-day extension for decision to be made. Agency now appears to be spread between Chmn. Powell and Comr. Abernathy backing delay of 1-2 years and Comrs. Copps who is said to support 3-month delay, if any, and Martin, who favors 6 months, several industry sources said. At least one source said vote on forbearance item, which is on circulation on 8th floor, still could come fairly quickly.

Intense round of discussions that went late into night Wed. reached tentative agreement on broadcast flag to protect DTV content from illegal copying, House subcommittee was told Thurs. Talks among standard-setting 5C body, MPAA and computer industry resulted in “an important agreement,” Panasonic/Matsushita Electric Corp. of America CTO Paul Liao told House Telecom Subcommittee. While he said there still were some dissenters, Liao predicted final report would be issued by original target date of May 17. AOL Time Warner CEO-Designate Richard Parsons and News Corp. Pres. Peter Chernin (testifying from L.A. by satellite) also praised agreement and predicted quick conclusion on issue, but Philips Consumer Electronics CEO Larry Blanford objected to process, calling for congressional intervention in talks to ensure set manufacturers weren’t placed under onerous burdens.

In direct challenge to constitutionality of Digital Millennium Copyright Act (DMCA), software developer 321 Studios sued 9 Hollywood movie companies that sought to block sale of its video copying program. Complaint, filed Wed. in U.S. Dist. Court, San Francisco, seeks no damages but asks for declaratory judgment stating that 321’s DVD Copy Plus software doesn’t violate DMCA’s anticircumvention provisions, doesn’t unlawfully aid consumers in infringing copyrighted material on DVDs, and enabling 321 to continue selling program.

Group of ground-penetrating radar (GPR) manufacturers plan to challenge ultra-wideband (UWB) order that FCC released late Mon., raising concerns about standards that Commission has acknowledged are very “conservative.” Mitchell Lazarus, attorney for GPR industry coalition, said manufacturers planned to file petition for reconsideration to ask Commission to take 2nd look at some of GPR issues in order. “These are urgent for the industry,” he said. Standards “are much more restrictive than necessary” to guard govt.-protected bands from interference from GPRs, he said. In first readings of 120-page order, industry observers also scrutinized new details such as treatment of govt. UWB operators and waiver extensions. Order spelled out that UWB standards would apply to those devices operating in shared or in non-govt. bands, including those operated by govt. agencies. NTIA Deputy Dir. Michael Gallagher told us that meant that when govt. agencies used off-shelf UWB technology, they must follow same Part 15 rules crafted for UWB as any other use. But for UWB devices specifically designed for govt. use, coordination process between FCC and NTIA will be used in certain cases. “NTIA will follow the law and the law clearly states that NTIA authorizes government systems,” he said.

“Congressional action tends to be a blunt instrument” that involves “fights from 5 years ago,” state regulator said last week to explain why regulators were better equipped than legislators to spur broadband. At panel hosted by advisory committee to Congressional Internet Caucus, W.Va. Public Service Commission Dir.-Consumer Advocate Div. Billy Jack Gregg was backed in that assessment by CEA Pres. Gary Shapiro and National Grange Legislative Dir. Leroy Watson, but opposed by CapNet Exec. Dir. Tim Hugo. Hugo also found himself in minority on regulation of new broadband deployment by incumbents, with other 3 reaching rough consensus that old Bell equipment should be subject to existing regulations but new build-outs would operate under new rules. Panel was bit refreshing in that not single member represented ILEC or CLEC, although many arguments echoed theirs, particularly when pro-Bell Tauzin-Dingell bill (HR-1542) was discussed.

NTIA is raising interference concerns over some parts of notice of proposed rulemaking (NPRM) issued by FCC in Oct. that would update sections of its Parts 2, 15 and 18 rules, including provisions that would modify emissions to limits on certain Part 15 devices above 2 GHz. In letter to Office of Engineering & Technology Chief Edmond Thomas, NTIA cited part of proposal that would increase allowable field strengths for radio frequency identification (RFID) rules. On RFID systems, proposal would harmonize U.S. rules with standards for such devices in Europe and Australia. NPRM sought comment on changes in power levels for RFID tags operating at 425-435 MHz, which NTIA said was within 420-450 MHz allocated on primary basis to federal govt. Military systems operating in that spectrum include radiolocation operations for aircraft and missile surveillance, early warning and fire control, said letter from Fredrick Wentland, acting associate administrator of NTIA’s Office of Spectrum Management. “The radiolocation radars in this band include ground, shipborne and airborne radars that are essential to the nation’s homeland defense,” Wentland wrote. NASA also uses band for telemetry and telecommand, he said. Citing preliminary NTIA analysis, he said power level changes in parameters for RFID tags “could result in interference to federal systems” and NTIA and federal agencies “cannot support the proposed rule changes.” In next 90 days, NTIA and agencies will complete studies and provide them to Commission. In NPRM, FCC said it agreed with Savi Technologies that proposed Part 15 changes would allow more advanced systems to operate at 433 MHz. In other areas: (1) NTIA objected to 11 dB increase in field strength limits for RFID tags in 13.11-13.41 MHz. It said 13.26-13.36 MHz was allocated to aeronautical mobile services, which are designated for safety-of-life communications. FAA uses that spectrum for communications in oceanic and remote areas. “The increase in field strength by 11 dB could severely reduce the distance that an aircraft can successfully communicate with a ground flight tracking system,” NTIA said. NTIA recommended use of another part of high frequency band that wouldn’t require increase in Part 15 emission limits in frequency band allocated for Aeronautical Mobile Services. NTIA said it needed 90 more days to complete studies in that area. (2) NTIA said it and other federal agencies also needed another 90 days to complete studies on protection of sensitive services and to identify continuing R&D projects above 38.6 GHz. FCC sought comment on need for changes in restricted bands above 38.6 GHz and whether there were Part 15 rules designed to protect sensitive service such as govt. operations that should be modified. Among govt. services operating in that spectrum are 13 bands used by NASA for space research and Earth exploration satellite service sensors for missions such as weather forecasting and global warming measurements, NTIA said.