NTIA expressed concerns last week to FCC that without appropriate safeguards in proposal for use of software defined radio (SDR), “this flexibility may lead to unauthorized spectrum usage.” NTIA submitted comments on notice of proposed rulemaking (NPRM) adopted by FCC (CD Dec 8 p1) that would streamline equipment approval processes. SDR technology allows wireless phones to receive intelligence from software rather than hardware, meaning radios can be changed quickly to transmit on different frequencies and in different formats. NPRM proposes SDR definition as transmitter for which operating parameters, including frequency range and modulation type, could be altered in software without making hardware changes. Proposal would streamline equipment certification procedures so that new operating parameters could be set via software without relabeling equipment already in field. NTIA said FCC had proposed that changes in frequency, power and modulation type of SDR could be authorized as new class of permissive change, called Class 3. FCC proposed that Class 3 permissive changes be made only to equipment in which no hardware changes have been made in original device. “NTIA does believe that, in order to verify that after the modifications authorized under a Class III permissive change, the SDR still remains compliant with the Commission’s operating and service rules… the combination of the hardware and the software modification must be reauthorized.” NTIA said proposal wasn’t clear on whether all possible combinations of installed software must be tested or whether it was sufficient to test each waveform separately. NTIA recommended that, in coordination with SDR industry, FCC examine security features that could be used to prevent unauthorized modifications that could change SDR compliance. SDR Forum said it backed NPRM and sought quick adoption of rules. As for tentative conclusion that radio software and hardware should be approved in combination, forum said that as technology advances, it might make sense to test them separately, Forum said. “Testing numerous versions of software with many versions of the underlying radio equipment could become burdensome,” Forum said, and combined testing would make sense until manufacturers and FCC had acquired more experience with technology. Among recommendations in its comments are that FCC: (1) Revise SDR definition to recognize software changes that affect both desired and undesired emissions and to permit hardware changes that don’t affect emissions of either type. (2) Not require declaration that radio is SDR at time of original equipment authorization. (3) State clearly that Class II permissive change is required only when undesired emission are degraded.

Lockheed Martin Missiles & Fire Control, Orlando, announced Fri. it and Central Fla .Innovation Corp. had created Xytrans to produce “smart” transmitters, receivers and integrated transceiver products for terrestrial broadband wireless and 2-way satellite communications. Lockheed Martin said Xytrans products would access Internet at 1.2 billion bits per sec., 1,000 times faster than DSL or cable.

Me. and Tenn. legislatures defeated bills to restrict drivers’ use of car phones. Me. House in 108-35 vote overwhelmingly rejected bill (LD-102) that would have prohibited use of hand-held mobile phones while driving. Bill squeaked through House committee process in Feb. but went down to defeat on House floor under weight of opponents’ arguments that there was no proven link between car phone use and impaired highway safety and that it was unfair to single out car phones from among all other driver-distracting electronic devices. In Tenn., legislative committees defeated 2 bills to restrict mobile phone use while driving. Senate Transportation Committee rejected SB-685, which would have banned use of handheld mobile phones while driving except to call for emergency services and that would have made violation criminal misdemeanor. House Transportation Committee defeated HB-1231, which would have banned drivers under 18 from using any mobile phone while driving, with violations punishable as criminal misdemeanor. Senate passed same measure as SB-10, but House panel’s action means legislation is dead for this year.

Pa. PUC has given Verizon until April 20 to accept all terms and conditions of last week’s functional separation order. To promote development of local competition, PUC is requiring creation of functionally separate wholesale and retail local service divisions within Verizon’s current Pa. operating company. If Verizon rejects plan, agency “reserves the right” to consider full breakup into 2 separate business units. PUC spokesman said goal was to have functional separation order fully implemented by end of this year, with timeline for interim steps to be developed in workshop sessions between PUC and Verizon after carrier accepts decision. PUC staff expects to publish full text of March 22 decision within 2 weeks. Additional conditions in order include requirement that Verizon open its remote digital loop carrier terminals to competing providers of digital subscriber line (DSL) services, participate in monthly sessions with PUC and CLECs to monitor its wholesale DSL provisioning and withdraw its appeals of all issues from 1999 Global Competition order except structural separation, which is pending before state Supreme Court.

Covad conceded broadband deregulatory bill House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.) were expected to reintroduce soon “probably will get through” House but, along with ALTS and CompTel, it hasn’t relented in efforts to educate Hill members on CLECs’ regulatory needs and legislative ideas, which run counter to Tauzin-Dingell plan, Covad Vp-Regulatory Affairs Susan Davis said in interview Fri. Davis said Covad and Competitive Broadband Coalition members were pressing House and Senate members to consider drafting legislation that would result in “more and better enforcement” of existing ILEC obligations and would affirm ability of CLECs to seek remedies to patterns of anticompetitive behavior via antitrust laws. Passage of similar version of Tauzin-Dingell’s HR-2420, expected to be introduced in next few weeks (CD March 2 p4), wouldn’t be “as big as a win” as last year’s passage in light of Sec. 271 application approvals in 4 states and anticipated endorsements this year in additional states, Davis said. That sentiment was expressed earlier last week by Competition Policy Institute (CD March 21 p7), which said approvals could reduce necessity of legislation. Despite likely passage in House, Davis doubted Senate would approve Tauzin-Dingell bill. Covad, third largest DSL provider behind SBC and Verizon, maintains stance that HR-2420 is call for “remonopolization” of Bell companies and “isn’t about helping competition,” she said. Removing interLATA restrictions on data services would eliminate ILEC incentives to open their networks to competition and erode requirement of Sec. 271 of Telecom Act that ILECs open local markets to competition prior to receiving interLATA relief, she said. On another topic, Davis said success of Pa. PUC order requiring separation of some Verizon operations (CD March 23 p1) would rest on how well it was enforced. Under PUC order, separation is behavioral rather than structural and is premised on employees’ following “code of conduct,” she said. For example, certain services can’t be marketed as bundled packages, and accounting rules must be followed to keep 2 operations separate. Asked about Verizon’s view that action wouldn’t cause any major changes in operations, Davis said that would be true unless regulators carefully monitored Verizon’s adherence to code: “It will be business as usual for Verizon if there is no enforcement.” Best part of order, she said, is that Pa. PUC Chmn. John Quain finally “told the world what CLECs go through” in criticizing Verizon’s tactics.

MDU Communications USA (MDTV) agreed to provide DirecTV programming to 2 Citiscape properties in San Francisco, company said last week. Portrero Square and Clementina Lofts become 3rd and 4th Citiscape properties of 26-building total for MDU Communications.

Ore. House E-govt. Committee put indefinite hold on bill to protect mobile phone and data terminal users from unwanted ads. Bill (HB-3345) would have prohibited mobile phone providers from disclosing location of customer’s phone except to 911 and law enforcement agencies. Measure also would have banned sending ads to mobile phones based on customer’s location unless user consented in writing in advance. Committee Chmn. Jim Hill (R- Hillsboro) said he was opposed to adopting “onerous prohibitions” on emerging industry and feared bill unintentionally would affect new wireless technologies such as Bluetooth, allowing computers to communicate with other wireless devices in confined areas. Wireless industry interests at recent hearings said bill could make it hard for wireless customers to get services they wanted and that wireless privacy concerns were best addressed at federal, not state, level. Proponents said privacy implications of technologies that precisely pinpointed mobile phone users needed to be addressed now, before problems could arise. Bill technically isn’t dead and could be revived in current session if compromise is worked out.

John Lawson, ex-Convergent Services and longtime public broadcasting lobbyist, named pres.-CEO of APTS, starting April 1… Promotions at Assn. of Communications Enterprises: Len Yanoff to vp-advanced services, Talbot Gee to conference services mgr., Linda Brobst to office mgr… Correction: We misidentified law firm Dewey Ballantine LLP (CD March 21 p10)… Warren Littlefield, ex-NBC, signs production deal with Paramount… Brian McPhail, ex-Tarantella, named vp-Consumer Software Div., Macrovision, replacing Brian Dunn, who becomes senior vp-new business development… Hamish Kusminski, ex-Lotus Development, appointed worldwide dir.-corporate communications, CellPoint…Kenneth Bauder promoted to pres.-gen. mgr., KHBS-TV, Ft. Smith, Ark. and KHOG-TV, Fayetteville… John Chalsty, Credit Suisse First Boston, joins Metromedia International Group board… Andrew Velcoff, ex-Turner Entertainment Group, becomes shareholder, Greenberg Traurig LLP entertainment practice.

Motorola will cut another 4,000 positions by midyear, increasing total number of job layoffs since Dec. to 22,000 out of work force of 147,000. Latest round of reductions will involve its (1) commercial, govt. and industrial solutions, (2) global telecom solutions, (3) broadband communications to a lesser degree. Company anticipated taking special charge against first and 2nd quarter earnings. Company didn’t give specifics on how many jobs it would drop from each operation. “Motorola is making tough but deliberate and strategic business decisions in order to remain competitive in the slowing economy,” said Motorola Networks Sector Pres. Edward Breen. “Unfortunately, reductions have been necessary for us to improve financial performance.” Other scalebacks announced this year include plans Motorola outlined in Jan. to end cellphone manufacturing operations at its Harvard, Ill., plant, which will result in loss of 2,500 jobs. It issued series of earnings warnings late last year and has been attempting to streamline operations.

Wireless industry is watching closely final reports due Fri. from FCC and NTIA on potential spectrum that can be tapped for advanced wireless services, including 3G. Several sources have indicated they didn’t expect significant changes in FCC draft report issued last fall, which said segmenting and sharing in MMDS and ITFS bands to allow operations of advanced mobile services would pose technical challenges. One widely expected change is that final NTIA report will be much more inclusive than draft on interference concerns raised by Defense Dept. NTIA interim report last year had outlined potential spectrum sharing and segmentation opportunities in some cases between new wireless users and govt. incumbents. Serious challenge draft cited was sharing with uplink satellite control systems. But Pentagon sent letter to Commerce Secy. Donald Evans last month raising concerns that loss of access to spectrum beyond that relinquished by military in Omnibus Budget Reconciliation Act of 1993 and 1997 Balanced Budget Act “would jeopardize the DoD’s ability to execute its mission.” DoD is submitting report to NTIA for inclusion in final report. Letter to Evans says DoD report concludes that sharing 1755-1850 MHz isn’t possible “due to predictable, mutual interference over large geographic areas and major metropolitan centers.” Mitigating expected interference “would require unacceptable restrictions on military operations, training and readiness,” former Deputy Defense Secy. Rudy De Leon said. He told Evans that DoD report concluded that “regardless of financial investment,” Pentagon couldn’t vacate or segment band until at least 2010 for nonspace systems and at least 2017 for space systems. Those dates could stretch out to 2030 for some satellites, he wrote. DoD said that such conclusions were based on principle that DoD couldn’t accept any degradation of its mission capability as result of spectrum reallocation. “The 1755-1850 MHz band is indispensable to the defense of the United States and its allies,” DoD wrote. “Our nation’s armed forces would be at a substantial strategic and tactical disadvantage in combat and the execution of military operations could be jeopardized if the Department lost its use of the band.” “I think that they are viewing the DoD report as the basis of their report and they are going to follow it,” said one industry source of upcoming NTIA report. Industry, on other hand, has outlined scenarios in which segmentation and sharing are possible in band at least in short-term to mitigate interference issues. With both FCC and NTIA reports expected to focus on challenges to sharing in respective bands, attention in industry is turning to who in Bush administration will take most active role as FCC and NTIA negotiate, sources said. “As a matter of practical negotiation, FCC doesn’t hold many strong cards,” said Precursor Group analyst Rudy Baca. “FCC is asking NTIA/the government for some of their spectrum ‘please.’ The response is usually, ‘No, it’s ours and we need all of it.'” As result, it becomes more difficult to carry out simple negotiations between FCC and NTIA, when former lacks full complement of commissioners and latter doesn’t yet have permanent director, Baca said. “It is going to take someone higher up in the Administration -- maybe Secy. of Commerce Don Evans or somebody in the White House.” MG