The FCC Thurs. issued a notice of inquiry, rather than launching a rulemaking, on protecting in-band on-channel (IBOC) digital radio content from home copying or redistribution over the Internet. The Commission also unanimously agreed to launch a full rulemaking on IBOC technical issues and what types of IBOC services can be offered. An inquiry is typically a step further from a final decision than a rulemaking.

The Ohio PUC took the unusual step of publishing a point-by-point rebuttal to criticisms by the Competition Ohio group about the PUC’s decision last month to grant SBC an interim 18% increase in its unbundled network element (UNE) rates. The PUC said it acted because Competition Ohio “has been misleading Ohio’s telephone consumers” about who they are and engaging in “scare tactics to enlist consumers” in fighting any SBC UNE increase. The PUC said Competition Ohio “isn’t a consumer advocacy group” but is funded by AT&T and other CLECs. The PUC disputed claims about the UNE increase causing spiraling local rates, saying there have been no retail local rate changes attributable to UNE rate changes, and that SBC in any event can’t raise basic local rates because of its price cap plan. The PUC also said it stayed the interim increase until it decided on pending petitions for reconsideration so those rates currently aren’t in effect. The PUC said the UNE increase won’t destroy local competition. It will reduce CLECs’ profit margins, the PUC acknowledged, but not to an extent that would force CLECs out of the market. The PUC said the group ignored the fact that CLECs have about a 20% share of Ohio’s local markets, and said the group misleadingly attributed perfectly proper SBC retail rate changes for optional and discretionary services to increased UNE rate levels. The PUC also said SBC isn’t gouging CLECs to fatten its bottom line, like Competition Ohio alleged, but is claiming a need to recover costs incurred in the course of serving CLECs. The PUC also said there’s no reason to believe the group’s claims that every CLEC will be forced to raise local rates because of UNE rate increases. Some may raise rates, the PUC said, but others may not.

The FCC unanimously adopted rule changes on the collection of claims owed to the U.S. govt., raising the maximum dollar amount of claims that can be compromised or suspended by the Commission. The agency said the updated rules reflected changes in the Debt Collection Improvement Act (DCIA) of 1996 and rules adopted by the Departments. of Justice and Treasury, “adjusted to take into account the special circumstances of debts arising under our auction rules.” The order included a rule under which the FCC will withhold action on applications and other requests if the applicant is delinquent in non-tax debts owed to the Commission. This rule calls for dismissal of such applications if the debt in question isn’t resolved. Key changes to the FCC’s debt collection rules include increasing the value of claims the FCC can compromise, suspend or terminate and the minimum value that can be referred to the DoJ. The maximum amount was raised to $100,000 from $20,000. The minimum amount that can be referred to the Justice Dept. rises to $2,500 from $600. The order said the change also reflects new debt collection procedures under the DCIA, including: (1) The transfer of delinquent debt to the Treasury Dept. for collection. (2) Mandatory credit bureau reporting. (3) A prohibition against extending federal assistance in the form of loan or loan guarantees to delinquent debtors. (4) The addition of DCIA administrative wage garnishment requirements and the federal salary offset procedures into FCC rules. The FCC said that under the rules, it won’t approve any applications or other authorizations until it determines that all delinquent debt to the FCC by the entity is paid or arrangements have been made for payments. The FCC’s so-called “red light rule” allows delinquent debtors to resolve their delinquency within 30 days to avoid having an application dismissed. In an earlier notice, the FCC had proposed that the 30-day period wouldn’t apply to applications when more restrictive rules oversee the treatment of debtors who have fallen behind. As an example, the FCC said existing rules require auction applicants to certify they aren’t behind in non-tax debt or their short-form application will be rejected and they won’t be able to bid. The FCC adopted this proposal, as well as one in which the red light rule applies to subsequent applications filed by winning bidders, known as “long-form applications.” But the FCC adopted an exception to comply with U.S. Bankruptcy Code related to the Supreme Court’s NextWave ruling. The Supreme Court held that Sec. 525 of the U.S. Bankruptcy Code precluded cancellation of NextWave’s licenses. This provision of the code provides that a govt. agency may not revoke a license “solely” because a debtor hasn’t paid a debt that’s dischargeable in bankruptcy court. The rules provide that applications to which Sec. 525 applies won’t be dismissed by virtue of the applicant’s delinquent status. The order was adopted March 25 and released Tues.

There’s stark disagreement on whether the FCC should extend CALEA requirements to VoIP services, comments filed with the FCC Mon. showed. While acknowledging the importance of ensuring that law enforcement is able to prevent crime using electronic surveillance, ISPs opposed the petition filed by the Dept. of Justice (DoJ), the FBI and the Drug Enforcement Administration (DEA) with the FCC. They said the proposal had no legal basis, and the CALEA rules would cripple the Internet. Bells generally shared the concerns of the law enforcement but said some modifications are needed. Law enforcement agencies strongly supported the petition, urging the Commission to adopt it expeditiously.

America’s Most Wanted host John Walsh sent a letter to Congress last week urging lawmakers to back the “consensus plan” for 800 MHz. Walsh weighed in on the issue earlier this year, spearheading a letter-writing campaign for viewers to back the plan supported by Nextel, the Assn. of Public Safety Communications Officials and others. Walsh told lawmakers last week that 3,500 people wrote in as part of the campaign since late Jan. “I fear that competitive interests may try to delay the FCC’s process in any way they can; we need to remain focused on doing what’s right for first responders and the people they protect,” he wrote. The FCC had aimed to include a proposal on mitigating public safety interference at 800 MHz on its agenda for the Thurs. open meeting but the item was pulled from the sunshine notice. As part of a continued flood of filings on the controversial proceeding, Pegasus Communications urged the FCC to not act in a matter that adversely affects guard band licensees at 700 MHz. “If the Commission does act in a way that adversely affects the guard band licenses, Pegasus would be constrained to take legal action to preserve its position,” the company, which owns guard band spectrum at 700 MHz, told the FCC last week. Pegasus said the Constitution’s takings clause bars such measures “without compensation and that action at the eleventh hour would be inconsistent with the notice provisions of the Administrative Procedure Act.” Pegasus told the FCC in an earlier filing that it had “some understanding that the idea of reallocating the Nextel 700 MHz spectrum to public safety is under consideration in hopes that it will mitigate the risk of successful litigation against the plan.” Access Spectrum, which also holds guard band licenses, raised similar concerns in recent ex parte filings at the FCC. The company told the agency it opposed “the potential reallocation of certain 700 MHz guard band licenses and 900 MHz SMR licenses.”

According to an article in the Journal of Commerce, the California legislature is poised to act if industry doesn't improve congestion at the state's ports. The article notes that port efforts currently include promoting voluntary appointment times for trucker pick-ups, and that this spring terminal operators will initiate a mandatory program for the placement of an RFID tag on trucks that call regularly at West Coast ports. The article states that the California legislature is considering a bill that would require a premium fee for daytime use of the marine terminals in Los Angeles/Long Beach, if the port community does not establish a program for extended gate hours by summer. (JoC, March 22-28, 2004. www.joc.com)

A debate and vote on reviving the moratorium on discriminatory Internet taxes and access taxes likely will be held the week of May 3, Senate Majority Leader Frist (R- Tenn.) said Thurs. Several Hill sources cautioned Thurs. that many other events in the Senate could postpone action further, however. Frist also made clear in a Q&A with the U.S. Chamber of Commerce he would like to see compromise language reach the floor.

Wireless officials, state regulators and others are watching closely hundreds of petitions to state PUCs from rural wireline carriers on wireless local number portability (LNP). Wireless LNP takes effect in U.S. markets outside the top 100 May 24. Several sources said they didn’t expect states to grant carriers many indefinite waivers, but observers noted states were handling the requests different ways.

In connection with D/N 98-14, the Federal Maritime Commission (FMC) has issued a notice of inquiry requesting comments, no later than June 1, 2004, on the current status of shipping in the U.S. trade with China and the effects of the new U.S.-China bilateral Agreement on Maritime Transportation (AMT).

Wireless technology developers and users told a Commerce Dept. forum Thurs. on wireless sensor technologies such as radio frequency ID (RFID) that globalized spectrum allocations are needed for some RFID applications. While panelists stressed that the market has grown in recent years for RFID, they ticked off remaining challenges, including working on standards and assuring customers about privacy protection.