The FCC asked for comments on whether it should impose mandatory minimum information sharing requirements on all local and long distance telephone companies “to increase the accuracy of billing information and decrease consumers’ complaints.” The item was removed from the agenda for the Thurs. agenda meeting after the Commission voted on it late Wed. The action followed the 2 petitions filed by Americatel, and AT&T, Sprint and MCI (jointly) in 2002, asking that the Commission make changes to the Customer Account Record Exchange (CARE) system to reflect changes in the marketplace. The CARE system, adopted by the industry after the AT&T break-up, is the voluntary industry standard for exchanging the customer information needed to set up and maintain customer accounts, and to execute customer orders and transfers between long distance carriers. Historically, under such a system, local phone companies provided CARE data to the appropriate long distance carriers every time customers changed long distance companies or billing, name or address information, to ensure seamless provision of service. However, the Commission said since the Telecom Act was passed in 1996, “the increasing number of customers switching local phone companies has affected the ability of long distance carriers to bill for long distance services rendered to those customers… CARE data are not currently exchanged in a uniform manner now that the number of local phone companies has increased significantly,” often leaving long distance companies “in the dark as to whether a customer remains on the network.” The agency said the issues raised in the petitions “would be more appropriately addressed through a notice and comment rulemaking proceeding than by an immediate ruling on the petitions.” The FCC asked for comments on: (1) “Whether imposing mandatory minimum CARE standards on all local and interexchange carriers could provide consistency within the industry and eliminate a significant percentage of consumers complaints” about billing errors. (2) “How extensive the billing problems described in the petitions are, and whether they are sufficiently pervasive throughout the industry to warrant regulatory intervention at this time.” (3) “Whether these billing problems may also arise in the context of wireline-to-wireless number porting, and on proposals for addressing any such issues in wireline-to- wireless number porting situations.” The agency said it believed that “a uniform process observed by all regulated entities… could provide a better framework for fair and consistent enforcement activity by the Commission.”

A coalition of consumer groups plans to raise 4 main issues in its suit against the FCC over the broadcast flag (CED Feb 4 p2). In a filing to the U.S. Appeals Court, D.C., the groups said the judges would be asked to rule whether: (1)The FCC exceeded its authority by imposing content redistribution control regulations on equipment manufacturers. (2)The Commission exceeded its jurisdiction by establishing a regulatory scheme that restricts the copying of copyrighted content, though the Commission doesn’t have such authority under copyright laws. (3)The Commission’s decision to prescribe the broadcast flag and other findings were supported by substantial evidence. (4)The Commission acted arbitrarily and capriciously in violation of the Administrative Procedure Act in concluding the broadcast flag was an appropriate method of digital TV broadcast content protection. The groups involved in the challenge include Consumers Union, Consumer Federation of America, Electronic Frontier Foundation, Public Knowledge, and the American Library Assn., among others.

Public interest groups that filed a suit against the FCC over the broadcast flag (CD Feb 4 p4) intend to raise 4 main issues. In a filing to the U.S. Appeals Court, D.C., they said the judges should rule on whether the Commission had: (1) Exceeded its authority by imposing content redistribution control regulations on equipment manufacturers. (2) Exceeded its jurisdiction by establishing a regulatory scheme that restricts the copying of copyrighted content, though the Commission doesn’t have such authority under copyright laws. (3) Gathered substantial evidence to support its decision to prescribe the broadcast flag and make other findings. (4) Acted arbitrarily and capriciously in violation of the Administrative Procedure Act in concluding the broadcast flag was an appropriate method of digital TV broadcast content protection. The groups making the challenge include Consumers Union, Consumer Federation of America, Electronic Frontier Foundation, Public Knowledge and the American Library Assn.

Members of the House Telecom Subcommittee raised many questions but offered fewer answers Wed. about renewal of the Satellite Home Viewer Improvement Act (SHVIA). Cable competition, the DTV transition and the “second dish” issue for EchoStar (which uses a 2nd dish to deliver some local channels) were popular topics for many members. Also, many with constituents near state borders, who wanted access to local broadcast signals from different markets, said it was important to give consumers a variety of options.

Members of the House Telecom Subcommittee raised lots of questions about the Satellite Home Viewer Improvement Act (SHVIA) Wed., but many didn’t offer much insight into their thoughts on renewal. Cable competition, the DTV transition and the “second dish” issue for EchoStar (which uses a 2nd dish to deliver some local channels) were popular topics. Those with constituents near state lines, who wanted access to local broadcast signals from distant markets, said it was important to give consumers options.

On March 4, 2004, the Senate passed its version of H.R. 1047, the "Miscellaneous Trade and Technical Corrections Act of 2003."

FCC Comr. Copps told state regulators that it’s “highly unlikely” that the FCC could write interim unbundling rules to satisfy the requirements of the U.S. Appeals Court, D.C., in the 60 days the court gave the FCC. Copps, speaking at the NARUC Winter Meeting, said the D.C. Circuit’s ruling didn’t provide enough of a basis for a rush rulemaking job.

The Senate Commerce Committee appears ready to adopt some, but not all, changes the House Commerce Committee made to indecency legislation. But the Senate doesn’t look ready to raise the fines to the $500,000 level approved last week by the House Commerce Committee. The Senate bill would raise fines to 10 times the current level -- to $275,000 for each utterance and a total fine of $3 million for any one incident.

Lockheed Martin said its merger with Titan Corp. may be delayed if the former’s review of Titan Corp.’s business practices isn’t completed by the March 16 stockholder meeting. Lockheed announced in Sept. it would purchase the company for $2.4 billion (CD Sept 17 p14). However, the company said it opened an investigation of Titan’s agreements with and payments to international consultants after the SEC opened an investigation. Lockheed said the allegations also concern “items of value” that may have been provided to foreign officials: “The alleged payments… if true, raise questions concerning whether there has been a violation of the Foreign Corrupt Practices Act.” The company is also reviewing whether the payments made to consultants were properly recorded. If investigations by the SEC, Lockheed and a new criminal investigation by the Dept. of Justice aren’t completed by the stockholder meeting, Lockheed “will need to determine whether the conditions to the merger have been satisfied.” Either company can terminate the merger if it isn’t complete by March 31, Lockheed said.

The Senate Commerce Committee scheduled a markup of the Broadcast Decency Enforcement Act, S-2056, Tues., March 9, 9:30 a.m., Russell Bldg., Rm. 253. The bill, introduced by Sen. Brownback (R-Kan.), would raise maximum fines for FCC enforcement of indecency violations to $275,000, 10 times the current level. The bill was modeled after HR-3717 in the House, which was amended last week to increase fines to $500,000. HR-3717 is scheduled to be considered by the House Wed. or Thurs.