U.S. Appeals Court, D.C., sided with FCC twice Fri. in 2 separate rulings, backing regulations on pricing for traffic that travels between ILECs and paging companies and upholding unrelated order on formula for Universal Service Fund (USF). In first case, D.C. Circuit unanimously rejected petitions by LECs, including Qwest,, that sought to overturn agency’s interpretation of regulations that bar LEC from assessing charges on another carrier for local traffic that originates on LEC’s network. That case turned on Qwest challenge involving one-way paging company TSR Wireless, which Qwest had charged for dedicated transmission facilities needed to pass paging calls on to its customers. Court also struck down challenge by National Exchange Carrier Assn. (NECA) to FCC order on USF formula. It said NECA had failed to demonstrate Common Carrier Bureau decision to retain 1998 formula for calculating those payments was arbitrary and capricious.

AT&T Wireless, Cingular Wireless, Sprint PCS and Verizon Wireless urged FCC last week to defer grant of 2 GHz mobile satellite service (MSS) applications until after it seeks comments on March 8 New ICO filing. New ICO CEO Craig McCaw had sought FCC approval of plan that would allow him to develop terrestrial spectrum using radio spectrum allocated to MSS operators such as New ICO (CD April 4 p1). New ICO’s March filing raised concerns that “the MSS services as applied for may not be viable,” carriers told FCC Chmn. Powell in June 13 letter, citing commercial wireless industry’s keen interest in such spectrum for 3G. Wireless carriers want FCC to defer acting not just on New ICO’s request, but on all pending 2 GHz MSS applications. Carriers said New ICO had reached collaboration agreements with 2 other MSS applicants and that there was “uncertainty” in business plans of other applicants. If Commission decided MSS spectrum was suitable for terrestrial services, it must be auctioned, carriers said. “Action on these applications should be -- and must be -- deferred until the broad spectrum policy and license processing issues raised by New ICO’s fillings are addressed,” they said. Arguments raised in letter expand on those made by CTIA last month in petition for rulemaking that asked Commission to reallocate “underutilized” MSS spectrum for other uses, including 3G. Four wireless carriers disagreed with New ICO contentions that latter was asking for modification of its original license applications. FCC should respond to CTIA petition before it grants any 2 GHz MSS authorizations, they said. They argued that because New ICO’s request would be “fundamental” change in original application, FCC must seek comment on modifications. “By submitting proposed modifications to its system architecture as an ex parte filing in a rulemaking proceeding, New ICO has essentially disregarded the Commission’s application processing requirements,” wireless carriers wrote. Carriers also contended New ICO’s request would: (1) Undermine FCC’s policies on satellite construction and build- out. “In essence, New ICO now has told the Commission that it will not meet the milestones for construction of the MSS system for which it applied.” (2) Contravene existing allocation for MSS, which doesn’t allow domestic terrestrial use. (3) Go against “long-held practices and policies for satellite services.”

Citing changing TV industry dynamics and emergence of new competitive forces, NBC Chmn.-CEO Robert Wright believes TV networks’ current dispute with their affiliates couldn’t have been avoided. “There just are a number of people [large group TV station owners] who don’t want to see those rules [35% station ownership cap] change,” Wright told us in interview: “They're very fearful of losing their position in their market, and that’s really fundamentally what this is all about.”

New FCC Comr. Michael Copps brings to agency strong interest in international trade issues, fascination with challenges raised by changing technology and belief that one shouldn’t join FCC “with a controlling ideology.” In interview Wed. with Communications Daily, Copps appeared to walk line between market- oriented approach to many business issues and govt. activism on others such as mergers and broadcast content issues. He also revealed apparent fondness for phrasemaking. “Here I am at the FCC, the Future of the Country Commission,” he said at start of interview. Asked at end to categorize his special bent at agency, Copps, former history professor, said he thought there was room for lawyers, engineers and perhaps “a wayfaring historian” like himself.

FCC Technology Advisory Council (TAC) will focus on wireless issues, especially spectrum management, under new 2-year charter. Formed by Office of Engineering & Technology (OET) under Federal Advisory Committee Act, TAC brought together diverse group of academicians, scientists and chief technology officers (CTOs) of technology companies representing telecom, data networking, software, consumer electronics and amateur radio interests. Role of TAC is to advise Commission on technical issues, OET Deputy Chief Julius Knapp said at meeting Wed. “The FCC couldn’t always anticipate technology, but we found people in the industry often could.” Mission of TAC is to help FCC anticipate how technology “might affect policy issues in the future,” he said. In 2nd 2- year charter, TAC will continue work of first council emphasizing software-defined radio and improved spectral management and continued noise floor study, he said. New areas of study requested by FCC include: (1) Better understanding of advances in optical technology, capacity of optical networks, availability of broadband services, interconnection of networks. (2) Network security and technology to ensure network integrity and “robustness.” (3) Plethora of consumer wireless devices and how pieces fit together. “The challenge of these consumer devices are all the different ‘languages’ spoken by different devices -- much of it on unlicensed spectrum,” Knapp said. In discussion, TAC raised concept of wireless “bill of rights” begun in first council. “Regulation has been much like the 10 Commandments -- there are too many ’thou shall nots’,” TAC Chmn. Robert Lucky said. Instead TAC began to think of wireless regulation in terms of rules of what wireless devices should be able to do, he said. In proposed bill of rights, first fundamental right of all wireless devices is “to transmit at any frequency at any power as long as it doesn’t interfere with any other wireless device.” The rest of admittedly unfinished bill of rights “deals with ‘how do you know you're not interfering?'” Lucky joked. Bill of rights concept could move licensing away from “ability to exclude others” to set of protocols to allow innovation by manufacturers within certain parameters, Motorola CTO Dennis Roberson. On goal of efficient spectrum sharing and management, industry must create “self-aware” devices that are aware of other wireless devices, he said. Several members warned FCC against too-rapid regulation of unlicensed spectrum used by wireless LANs and other devices. “These unlicensed radios, mostly low cost and short range, have a potential to become a pervasive part of communications… and will melt down because there isn’t enough spectrum,” Lucky said. Proxim CTO Kevin Negus said problems “aren’t fatal and new wireless products will thrive in the market based on their ability to work in crowded spectrum.”

CHICAGO -- Whether News Corp. or EchoStar buys DirecTV, deal probably will face heavy scrutiny by lawmakers and regulators, key Hill staffers said. Speaking at NCTA convention here late Mon., congressional aides said either scenario would raise competitive concerns in Washington, potentially complicating efforts by new DBS company to compete against cable operators and other video rivals. But they said concerns would differ greatly, depending upon which buyer succeeded. “It’s 2 completely different set of competitive issues,” said Victoria Bassetti, chief counsel for Senate Antitrust Subcommittee.

U.S. Court of Appeals, D.C., turned down petitions for review of FCC’s order on competitive bidding and other rules for 800 MHz special mobile radio (SMR) service filed by Small Business in Telecommunications (SBT). At issue were FCC rules on planned auction of licenses for 175 economic areas (EA) for upper 200 channels of SMR band. Commission had determined that any EA licensee could require any incumbent SMR operator to relocate to lower 230 channels of SMR spectrum as long as new licensee provided displaced incumbent with comparable facilities and spectrum. FCC also had crafted auction rules to allow bidding credits for small businesses. Much of decision involved procedural machinations between FCC and SBT, which had filed 2 petitions for reconsideration in 1997 asking agency to review parts of orders dealing with both lower and upper channels of 800 MHz. SBT argued to D.C. Circuit that FCC: (1) Failed to obtain prior approval from Small Business Administration (SBA) of its small business definition. (2) Didn’t give parties enough time to participate in 800 MHz SMR auction. (3) Failed to address economic impact of relocation on small business incumbent licensees. In opinion written by Circuit Judge Karen Henderson, court ruled SBT’s contentions on SBA approval of small business definitions were “without merit.” (Between 2 petitions for review filed by SBT, SBA had approved definitions.) SBT contention that FCC had failed to follow Final Regulatory Flexibility Act (FRFA) analysis in its lower channel report and order also was rejected by 3-judge court. Judges Judith Rogers and David Tatel also heard case. “From our review of the record, it appears that SBT failed to raise the FRFA analysis issue during the rulemaking,” decision said. It also noted that, subsequent to original lower channel report and order, FCC had revisited issue of when incumbents should be repaid for involuntary relocation costs.

FCC said Office of Management & Budget approved RF procedures order June 1 and rule would take effect upon publication in Federal Register. Order covers issues raised in earlier proposal on FCC’s review of requests for relief from impermissible state and local regulation of personal wireless service facilities based on environmental effects of RF emissions. Order establishes that petitioners seeking relief under Sec. 332 of Communications Act must serve copy of petitions on state and local govts. that are subject of case and on state and local govts. otherwise specifically identified whose actions petitioners argue don’t align with federal law.

Full-page ad blasting data deregulation legislation that appeared Wed. in The Hill has elicited consternation from some of largest members of Computing Technology Industry Assn. (CompTIA). CompTIA ad, which featured student wearing dunce cap repeatedly writing on blackboard, “I promise to obey the rules of the Telecom Act,” was printed despite neutral stances on bill taken by some of CompTIA’s computing industry member company behemoths, industry lobbyists said. Lobbyists said ad stemmed from “communications breakdown” between CompTIA leadership and some of its most influential members on bill (HR-1542), which was introduced by House Commerce Committee Billy Tauzin (R-La.) and ranking Democrat John Dingell (Mich.) to lift restrictions on provision of data services by Bell companies across in-region interLATA boundaries.

Foreign ownership of Canadian telecom and cable companies will be “one of the major recommendations” in task force report expected week of June 18, said Canada’s Minister of Industry Brian Tobin. He indicated his dept. would act on expected recommendation from National Broadband Task Force to “urgently review” rules limiting U.S. and other countries from owning more than 46.7% of Canadian cable companies and facilities-based signal carriers (CD May 11 p6, April 25 p9).