FCC Chmn. Powell told Senate Commerce Committee in hearing Tues. that complete preemption of states wasn’t issue in Triennial UNE Review or other upcoming proceedings. He said there would be a role for both federal and state regulators, saying “the word preemption is being thrown around lightly.”

Progress & Freedom Foundation (PFF) scholar Randolph May produced “scorecard” for evaluating FCC’s action on upcoming UNE Triennial Review, cable high-speed access and wireline broadband. PFF benchmarks for scoring Commission’s actions are: (1) Unbundling and sharing should not be required for newly installed fiber or other noncopper facilities. (2) Broadband services, regardless of technology platform, should not be subject to unbundling and sharing requirements or Computer 2-type proceedings. (3) Local switching should be removed promptly from unbundling and sharing regime. (4) Interoffice transport and high-capacity loops should be removed promptly from unbundling and sharing regime and “special access” should not be reregulated. (5) Presumptive sunset regime with competitive triggers should be established for removal of copper local loops from unbundling and sharing requirements. (6) Commission should preempt states from mandating unbundling and sharing requirements that exceed scope of federal obligations. (7) Elements that have been removed from unbundling and sharing regime should not be considered on “competitive checklist” for evaluating Sec. 271 applications. May’s paper said FCC would be forced to choose between 2 competing visions of telecom regulation: (1) Static regulated competition, where communications services were provided essentially in natural monopoly environment, which is likely to be case indefinitely. Question for regulators would be how to shape regulation to guarantee competitor access to incumbent facilities. (2) Dynamic deregulation, where communication services were provided in what rapidly was becoming naturally competitive environment that encouraged more competition and innovation. Regulators would have to figure out how to transition to framework with less regulation, leaving regulation in place only where necessary for remaining “pockets of monopoly.” May said if Commission chose first vision, investment in advanced telecom facilities and equipment would be impaired. Other vision would lead to long-term sustainable competition, he said.

FTC urged House Commerce Committee Wed. to give it power to levy fees on telemarketers to fund proposed do-not-call registry. Commerce Committee spokesman Ken Johnson said House could take action to implement funding mechanism as early as today (Thurs.) through continuing resolution. During “briefing” today on Capitol Hill, FTC Chmn. Timothy Muris told committee it would take about $16 million to fund list and if Congress didn’t act soon to give FTC funding authorization, Commission wouldn’t be able to implement list this year. Committee Chmn. Tauzin (R-La.) said he was concerned about potential jurisdictional issues that could hamper FTC’s implementation of list, but Johnson said Tauzin agreed to limit authorization to 1-2 years. During briefing, Tauzin asked Muris about reauthorizing system after period of time, to which Muris replied: “It would be reasonable to assess the system after it’s up and running.” Tauzin told Muris: “You understand there are some concerns about authorizing fees for a system that’s not yet set up.”

CTIA plans to petition FCC next week to seek another delay in implementing wireless local number portability (LNP), Pres. Tom Wheeler said Wed. In July, Commission gave wireless carriers 3rd extension, to Nov. 24, 2003, to provide LNP in 100 largest Metropolitan Statistical Areas. Wheeler cited new CTIA data on wireline rate centers that 90% of time when consumers wanted to keep phone number when switching from wireline to wireless, “they're told to go pound sand.” Point of new challenge to LNP rules, he said, is that they shouldn’t be implemented until “the competition that they claimed they were doing in the first place is made possible by their rules.”

Embattled Ariz. Comr. Jim Irvin (R) was sworn in Mon. to new 4-year term on Ariz. Corporation Commission, despite federal civil jury last month returning $60.4 million judgment against him for misusing his office to interfere with energy utility merger. In his first public statement since then, Irvin said he wouldn’t quit despite calls last month from state’s new Gov. Janet Napolitano (D), other top state leaders and his own party for him to resign.

IDT Winstar and Verizon told FCC they had settled dispute over former’s acquisition of assets of fixed wireless provider that filed for Chapter 11 protection in 2001. But Verizon said in Jan. 2 filing that its counter-petition for declaratory ruling would remain alive because issues could recur under similar scenarios. IDT Winstar and Bell companies had disagreed in last year over terms of interconnection agreements to which RBOCs must be held for fixed wireless provider that has emerged from Chapter 11. In April, IDT Winstar filed emergency petition for declaratory ruling, raising concerns about “immediate threats” by Verizon and Qwest to deny or delay providing facilities. Winstar contended Communications Act and agency rules mandated that those facilities and services be provided to company. But Bell companies contended federal bankruptcy law required IDT Winstar to assume and cure past debt on contracts assumed by pre-Chapter 11 Winstar. Verizon told Commission its process shouldn’t be used to allow carriers in bankruptcy to avoid requirements of bankruptcy court and that Winstar had period to assume or reject existing services or facilities and to make “appropriate cure” for services assumed from pre-Chapter 11 company. IDT Winstar and Verizon said their notice informing FCC of settlement didn’t affect relief that Winstar sought against other LECs in its original petition.

Facing May deadline for digital conversion, public broadcasters have largely come up empty in their digital carriage negotiations with cable operators in more than 3 years of talks following the successful carriage deal with Time Warner in Sept. 1999. Only other MSO to sign voluntary carriage agreement with PTV stations was Insight Communications in April last year.

Federal judge in Seattle declined to issue emergency stay of Jan. 1 effective date for new telecom consumer privacy rules adopted last month by Wash. state regulators. Judge Barbara Rothstein of U.S. Dist. Court, Seattle, rejected Verizon request for emergency injunction suspending new rules. She said Verizon failed to show rules would cause immediate and irreparable harm if they went into effect. Wash. Utilities & Transportation Commission (WUTC) privacy rules establish “opt-in” approach to privacy of sensitive customer account information such as call detail records, meaning such information can’t be released to any other party without customer’s prior consent. That is in contrast to FCC’s opt-out approach, where such information can be released unless customer specifically forbids it. Verizon sued in federal court, saying state’s rule was unconstitutional infringement on its commercial free speech rights that unlawfully impaired its ability to communicate with its customers and its affiliates. Verizon contended new rule would cripple its ability to assess customer needs and develop new products and services and force it to make numerous unsolicited contacts with users in order to obtain their permission to consult account information. However, WUTC countered that Verizon “generally overstates and misrepresents” effects of new rules.

Wireless technology developers urged FCC to move forward with allocation plan for 71-76 GHz, 81-86 GHz and 92-95 GHz that would allow commercial users and govt. and scientific operations to co-exist. Allocation and licensing proposals for W-band frequencies were part of comments due this week in rulemaking that would pave way for commercial operations in those bands for first time. Developers have eyed that millimeter wave spectrum for rollout of gigabit-per-sec. broadband capacity, particularly in areas where fiber couldn’t reach easily.

FCC is likely to loosen some unbundled network elements (UNE), said AT&T Gen. Counsel James Cicconi during debate on broadband at Federal Communications Bar Assn. conference Fri. Cicconi said noteworthy part of ruling will be “how the Commission views the important problems of switches,” he said, adding Bell companies have been unwilling or unable to facilitate the “hot cut” process.