FTC entered final settlement with bankruptcy trustee for International Telemedia Assoc. (ITA) that resolved cramming suit against ITA. Settlement gives FTC allowed claim of $3.5 million in ITA’s bankruptcy case. Commission said it already had received $700,000 from ITA’s bankruptcy estate and expected further distribution. FTC filed suit against ITA and Online Consulting Group in July 1998 alleging they were engaged in cramming charges for audiotext services -- telephone-based entertainment programs - - onto consumers’ phone bills. In Sept. 1998 preliminary injunction was issued but both companies already had ceased operations. Settlement resolves outstanding claim for monetary relief against ITA, agency said.
Draft General Accounting Office (GAO) report recommends that General Services Administration (GSA) open negotiations by March 30 with Sprint and WorldCom to reduce $1.5 billion minimum revenue guarantees of FTS 2001 contract. GSA, in draft report now circulating for comment, said suggested cut in minimum revenue was based on carriers’ “failure to meet management information and billing requirements within the time frames established in the contract.” Report spreads blame for contract lags among GSA’s “inability to rapidly add transition-critical services” to new agreements, slow pace at which federal agencies placed orders for services and failure of Sprint and WorldCom to provide some data GSA needed to “effectively manage this complex transaction.” Report also cited extent to which some LECS didn’t provide facilities on schedule to deliver FTS 2001 services.
FCC Office of Engineering & Technology plans public forum to discuss “technical challenges” related to competitive access to fiber-fed transmission facilities between central offices and end users in next-generation networks. Agency said action was follow- up to earlier forum that looked at ILEC efforts to deploy fiber closer to end users through use of remote terminals. Meeting will be in the FCC meeting room, March 29, 1-4 p.m.
New partners at Ropes & Gray: Edward Kelly and Matthew Vincent, ex-Foley, Hoag & Eliot; and Marc Rubenstein, ex-Palmer & Dodge, join Boston office; Kathleen Delaney, ex-kinkos.com; and James Spears, ex-FTC, join Washington office… Tori Clarke, former NCTA vp-public affairs, nominated to be Asst. Defense Secy.-Public Affairs… N.M. Public Regulation Comr. William Pope resigns, citing policy differences with other members; Gov. Gary Johnson (R) may appoint replacement to fill out remainder of Pope’s term, which expires next year… Scott Tagliarino, ex- Edelman Public Relations, named vp-corp. and mktg. communications, PanAmSat… Stephen Lubniewski, senior vp-systems solutions, Lockheed Martin’s Systems Integrations-Owego, moves to pres.-gen. mgr., Lockheed Martin Global Telecommunications enterprise solutions-U.S. business unit.
Northpoint urged FCC to grant its affiliates’ license applications “without further delay” in comments filed Mon. in 12 GHz spectrum proceeding involving development and use of Multichannel Video Distribution and Data Services (MVDDS). “With competition and digital services lacking throughout the country, the FCC should act now and allow us to start providing needed service” in U.S., Northpoint CEO Sophia Collier said. However, Satellite Bcstg. & Communications Assn (SBCA) is fighting to keep terrestrial services out of 12.2-12.7 GHz because of concerns of interference.
Mich. law enforcement officials shut down Internet-based child pornography business. They charged Nashville, Mich., man with racketeering through posting and distributing child porn on Web site to dues-paying members and using computers to commit crime. Arrest is first Internet child porn bust by High-Tech Crimes Unit established last year by Mich. Attorney Gen.’s Office. Investigators said they found 2,000 photos of nude girls aged 9 to 14 in lewd poses on alleged porn site. Site members paid $25 monthly fee to gain access to pictures, which could be downloaded from Web hosting service in Cal. and printed. Site allegedly generated $19,000 in revenue in its few months of existence. Acting on tip, investigators used debit card to purchase membership on site, allegedly operated from suspect’s home in rural Barry County in central lower Mich. Suspect faces up to 20 years in prison and $100,000 in fines.
W.Va. bill to prohibit release of 911 recordings or transcripts to anyone, including news media, without court order or subpoena cleared Senate committee process and was poised for Senate floor amendments. Bill (SB-412) is being pushed by emergency center directors who say they want to protect privacy of people who use 911 but are concerned with broadcasters’ airing lurid 911 calls. It would also prohibit making public the identity or location of person making 911 calls, reflecting proponents’ concerns of retribution because of reporting crimes or domestic violence.
Two Ill. state senators on chamber’s delegation to legislature’s special Ill. telecom act rewrite subcommittee said none of current candidate bills to replace current statute, which expires this summer, would meet state’s needs. State Sens. Kirk Dillard and Steve Rauschenberger were particularly critical Tues. of Ameritech-backed SB-134 that would largely deregulate carrier. Lawmakers said 2 “common-sense” principles must be embodied in any new Ill. telecom law: (1) Giving Ill. Commerce Commission full authority to deal with anticompetitive behavior and ensure open local exchange marketplace, backed by enforcement power to levy “meaningful” fines and employ other sanctions including structural wholesale-retail separation of incumbents. (2) Creating incentives and sanctions to ensure high levels of network infrastructure investment by Ameritech and other incumbents regardless of how their rates were regulated.
Utah legislature passed and sent to Gov. Michael Leavitt (R)bill (HB-149) that would limit authority of municipalities to own and operate cable and telecom facilities. Measure would bar local govts. that issue bonds to finance capital costs from paying origination, financing or other carrying costs from general funds or other enterprise funds. Bonds issued must be secured and paid for solely with municipal revenue generated from providing cable or telecom services, bill stipulates. It would require that municipality establish enterprise fund to account for its operation of cable or telecom service and would bar transferring any appropriation or other balance from fund to any other enterprise fund. “It [HB-149] sets up a number of roadblocks” for municipalities to enter telecom business, said Paul Venturella, telecom mgr. of Provo, Utah, which recently acquired cable system. AT&T spokeswoman said legislation would allow municipalities to compete in retail business only if they followed rigid requirements. She said it would help private operators by making municipalities pay same franchise fees and other taxes as incumbent cable systems must pay. “We are relieved that the bill levels the playing field” for corporate entities, she said. Meanwhile, Ore. legislature was considering measure (HB-2680) that would: (1) Require local govts. to set and charge prices or rates that were high enough to cover all direct and indirect costs incurred in providing telecom services. (2) Mandate annual full cost accounting. (3) Prohibit local govts. from paying direct or indirect costs incurred in providing telecom services if they weren’t reflected in accounting. (4) Require local govts. to provide 3-year cost projection before providing telecom service. NCTA spokesman said 13 states so far had enacted measures to level playing field for private cable operators: Cal., Conn., Fla., Ga.,Ill., Minn., Nev., N.H., Ohio, Okla., R.I., Tenn., Vt. Similar measure was in works in Wis., he said.
Commercial broadcasters and their lawyers who sat through seminar last week at FCC on upcoming auctions of FM frequencies were said to be “outraged” when Commission announced auction’s postponement just few minutes before nearly 5-hour session ended (CD March 9 p8). About 50 minority potential bidders, on other hand, were “elated” by delay, according to spokesman-attorney David Honig. New date for auction is Dec. 5 (postponed from May 9), with first payments to participate now due Sept. 24.