Three of 7 Qwest states participating in collaborative effort to assess Qwest’s compliance with 6 Telecom Act competitive checklist items not directly related to its operation support systems (OSS) reached preliminary assessments of how well Qwest is doing. Iowa Utilities Board (IUB) found Qwest meets all 6 points under review, including No. 3 (access to poles and other infrastructure), No. 7 (access to 911, directory assistance and other operator services), No. 8 (access to white pages directory listings), No. 9 (number administration), No. 10 (access to network signaling and databases) and No. 12 (local dialing parity). IUB conditioned its findings on verification of Qwest’s performance through Qwest Regional Oversight Committee’s OSS performance measures audit results, and Qwest carrying out commitments it made to satisfy concerns raised by individual CLECs. Wyo. PSC found Qwest is in compliance with checklist items 3 and 12. PSC declined at this time to rule on Qwest’s compliance with items 7-10. Agency PSC said Qwest has made efforts to address general CLEC concerns in these areas, but there were certain concerns specific to particular Wyo. CLECs that still needed resolution. PSC said it also wanted to see regional performance measurement audit results before reaching conclusions on remaining items. Mont. PSC found Qwest has fully complied with item 12, local dialing parity, but didn’t reach conclusions about remaining 5 items under review. PSC said it will be addressing other items this summer through comment-and-reply cycles and briefs, without need for industry workshop sessions. Like Iowa and Wyo., Mont. PSC also wants to see performance audit results. Other Qwest states in collaboration on the 6 checklist items are Ida., Utah, N.D. and N.M.

FCC finalized regulatory fee schedule for 2001 in order issued Mon. and acted on requests for changes, including WorldCom’s objection to increased fees for Multipoint Distribution Service (MDS), which FCC turned down. WorldCom complained that 64% increase in MDS fees doesn’t reflect increase in regulatory costs but rather reflects drop in number of MDS licenses. Company said agency’s practice of spreading increases proportionately across communications services resulted in discriminatory treatment of MDS providers. On another issue, agency said complaint by CTIA and Verizon Wireless about commercial wireless fees was “misplaced.” CTIA said per-subscriber fees should have declined far more than they have because there are more subscribers now. CTIA and Verizon said number of subscribers has increased 62% since 1999 fiscal year but 2001 fee is only 3% less than FY 2000 and 6% less than 1999. However, FCC said its current approach is aimed at eliminating concerns expressed by CTIA. Agency did agree to revise its estimate of wireless subscribers based on new FCC data but said it wasn’t willing to accept CTIA’s claim that FCC had to use industry’s data “to avoid overpayment by CMRS [commercial mobile radio service] operators.” FCC also turned down request for revision by Paxson Communications although agency said company raised “significant questions.” Paxson said fee for UHF construction permits has increased 43% over FY 2000 and now is $1,000 higher than one for VHF, even though Congress originally set lower fees for UHF. Paxson had argued that increase in UHF fees is inconsistent with lower fees paid by some faster-growing services that presumably impose more regulatory cost. FCC said it will re-examine UHF TV fees next year when new cost accounting system has been developed. FCC also turned down Comsat’s request that regulatory fees not be placed on satellites owned by Intelsat.

U.S. Appeals Court, D.C., handed decisive win to FCC Fri., upholding agency decision to remove carrier cost-recovery requirement as precondition to provision of Enhanced 911 service. To turn around slow rollout of E911 services, FCC had stripped away condition that wireless carriers didn’t have to meet E911 Phase 1 and Phase 2 requirements until guaranteed state or local govt. funding was in place. Action was driven by concern that cost-recovery requirement was slowing E911 deployment and that wireless carriers could recover such costs from subscribers because they weren’t rate-regulated. Rural carriers, including U.S. Cellular Corp., challenged FCC decision, based in part on concern that they had less dense subscriber base to pass on such costs to customers. In unanimous ruling written by Judge David Tatel, court concluded eliminating carrier cost recovery requirement “merely imposes the cost of E911 service on its beneficiaries.” Washington attorney Thomas Van Wazer, who argued case for U.S. Cellular, said carrier was “strongly” considering appeal to full 9-member D.C. Circuit.

BOSTON -- Equipment vendors and fixed wireless operators in closing session of Wireless Communications Assn. (WCA) show here Wed. stressed need for speed amid warnings that swift action was needed before DSL and cable modems cemented their hold on market. Uncertainty over how equipment costs would be driven down and need for standards must be resolved to reach “critical mass” of customers, several speakers said. “I am still not certain how quickly we are going to make broadband to residents happen,” Vyyo CEO John O'Connell said. But slowing of financial markets that has affected rollout of DSL and cable also gives fixed wireless industry lead time to capture broadband market share, Nucentrix Chmn. Carroll McHenry said. “We still have a substantial window of opportunity,” he said, especially in small and medium markets where DSL deployment and cable overbuild efforts aren’t moving as quickly as in top markets.

Warning that planned interactive TV (ITV) systems threaten to intrude deeply upon consumers’ privacy, several public interest groups called Tues. for greater federal and state regulation of ITV industry as well as more vigorous self-policing by ITV companies themselves. In new report issued by Center for Digital Democracy, groups argued that ITV companies were working to build huge “new data collection infrastructure” that would gather detailed personal information about consumers without their knowledge and with few privacy safeguards. “The model that these companies are following combines the worst aspects of the Internet and mass media as the new systems are being designed to track not only every activity of users as they surf the net, but also the programs and commercials they watch as well,” report said. “We believe that ITV data collection practices represent a new threat to personal privacy in America.”

BOSTON -- Implications of sagging financial markets raised at Wireless Communications Assn. convention here this week ranged from difficulty in renewing ITFS leasing agreements to FCC delay in setting auction date for 24 GHz market. Winstar Chmn.-CEO William Rouhana, in first comments before industry group since company’s Chapter 11 filing in April, assailed “schizophrenia” that has beset telecom sector, pitting perception of “overvalued” assets of broadband providers against growing consumer demand for services. “There is this incredible schizophrenia that has taken hold,” he said Tues.

In ruling that overturns $17 billion PCS auction results, U.S. Appeals Court, D.C., handed resounding victory Fri. to NextWave in its nearly 3-year battle to retain licenses for which it had bid $4.7 billion. Unanimous ruling by 3-judge panel reversed 1998 FCC decision that cancelled NextWave licenses for missed payment, meaning C-block licenses on which largest U.S. carrier Verizon Wireless bid nearly $9 billion would revert to NextWave. Several industry observers pointed out shortfall that decision, if not challenged by FCC or sustained on appeal, would mean to govt. coffers. NextWave bid $4.7 billion for 90 PCS licenses in 1996, but bidders such as AT&T Wireless, Cingular and Verizon in reauction agreed to pay nearly $15.4 billion. Unclear as of Fri. was what action FCC would take next, with request for en banc hearing before D.C. Circuit or for airing before U.S. Supreme Court among potential options. Verizon Wireless CEO Denny Strigl urged FCC and NextWave to “settle this dispute in a way that permits the FCC’s auction results to stand.” While NextWave immediately outlined plans to begin buildout of licenses, speculation turned Fri. to settlement possibilities, with ex-FCC Chmn. William Kennard seeing potential “tragedy” if carrier received “billions” to walk away from licenses.

In what it termed “a streamlined and targeted process” for FCC consideration of charges against Big 4 TV networks, Network Affiliated Stations Alliance (NASA) asked Commission Fri. to issue declaratory rulings in 3 areas where it said one or more of networks had “demanded affiliation terms” that were counter to Communications Act and FCC rules. NASA charged one or more of networks had “asserted excessive control” over affiliates in programming decisions, future use of digital spectrum and to “interfere with or manipulate” proposed sale of stations (CBS is specifically excluded from last charge).

CTIA Senior Vp. Govt. Affairs Steve Berry told reporters after Congressional Internet Caucus lunch Tues. that wireless industry wasn’t interested in altering “integrity” of 1999 Defense Authorization Act as part of proposed 3rd-generation wireless solutions. That authorization act had guaranteed that Defense Dept. spectrum couldn’t be taken away without military users’ being compensated for moving and given comparable spectrum. Industry isn’t interested in “repealing or significantly changing” 1999 act, possibility that Defense Dept. has raised in recent weeks as being problem if that’s part of 3G wireless legislation (CD June 6 p1). Instead, industry, which has been discussing 3G draft legislation on Capitol Hill, is working to meet DoD concerns that it be given more stringent safeguards that military users will be paid to move and that any potential transition out of existing spectrum would occur in phased-out manner that would protect operations, Berry said, in response to questions. “We're having really good discussions with DoD,” he said. He characterized as positive recent reports in defense trade press that U.S. Air Force had put price tag of nearly $3 billion on potentially moving some of its systems. Berry said he didn’t think it was likely that 3G bill would drop in Congress before July 4 recess. Extra time is positive because it means DOD “can get comfortable” with concepts in draft legislation, he said. Interest of industry is in bill’s moving forward on timeline that allows workable solution to be reached, Berry said. “Right now we want to keep our options open,” he said, reiterating that CTIA would like to see Administration push back July target for FCC to make spectrum allocation decision. That change can be made without budget scoring impact because delay in allocation decision wouldn’t have immediate impact on end date for auction, he said.

Lifting restrictions on ability of Bell companies to provide data services across in-region, interLATA boundaries “would mean that in addition to the local phone markets, the Baby Bells could also monopolize the long distance broadband market,” House Judiciary Committee Chmn. Sensenbrenner (R-Wis.) said Mon. in his weekly Web column. USTA blasted Sensenbrenner’s comment, citing FCC statistics that indicated CLEC local phone market penetration was increasing. USTA also said data deregulation would hasten expansion of Internet services in underserved area, and urged Congress to allow telcos to compete for slice of high-speed Internet market under same terms as cable industry.