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FCC EYES COMPENSATION REFORM FOR TELECOM CARRIERS
January 9, 2001 by Edie Herman and Mary Greczyn|Miscellaneous

As FCC readies long-anticipated inquiry into unifying carrier compensation methods, telecom industry appears less than united on how -- or even whether -- it should be done. FCC official said at news briefing Mon. that if Commission approved Notice of Inquiry proposed by Common Carrier Bureau, it would open proceeding that probably would take “several years.” Some industry representatives have urged agency to begin proceeding, saying it doesn’t make sense economically to have so many disparate intercarrier compensation methods. But others question value of rationalizing those different plans such as access charges, reciprocal compensation and various forms of wireless interconnection charges.

POWELL AT CES EXPRESSES RELUCTANCE TO MOVE TO PROMOTE DTV
January 9, 2001 |Miscellaneous

LAS VEGAS -- FCC Comr. Powell endorsed free market vs. govt. regulation, pleasing consumer electronics officials at the CES here Sat. But reaction was more muted when he also indicated reluctance for govt. to move aggressively to spur DTV transition. Powell, who is widely rumored to become next chmn. of FCC, was interviewed one-on-one by CEA Pres. Gary Shapiro, also rumored to be candidate for position in new Bush Administration, despite recently signing new 10-year contract with CEA.

Topics:Federal Communications Commission (FCC)
In defiant response to AT&T Broadband’s request for waiver of franch...
January 4, 2001 |Miscellaneous

In defiant response to AT&T Broadband’s request for waiver of franchise fees on cable modem service (CD Jan 3 p3), Lakewood City, Cal., warned company that withholding payment of franchise fee “will jeopardize your franchise or subject you to penalties.” Accusing AT&T of misstating federal policy in its letter requesting waiver, Asst. City Mgr. Michael Stover said city should neither agree to waive franchise fees nor indemnify AT&T against various potential costs. “We expect AT&T Broadband to continue to pay all required franchise fees, including those based on cable modem service revenue,” city said. Referring to AT&T’s contention that it passed through franchise fee on cable-delivered Internet service to subscribers under federal law, he said Telecom Act “only permits cable operators to pass through increases in franchise fees on regulated cable service rates. Federal law does not authorize or otherwise address the ability of cable operators to pass through franchise fees on cable modem and other services.” Although federal law allows cable operators to include line item on subscriber bills indicating amount assessed as franchise fee, Stover said including line item was “entirely different concept” than passing through those costs to subscribers. In City of Dallas v. FCC, 5th U.S. Appeals Court, New Orleans, “made it clear that, even when such a line item is included on subscriber bills, franchise fee are imposed upon cable operators, not on subscribers,” he said. As for concerns raised by AT&T over potential class action lawsuits, he said that since franchise fees were paid by AT&T and not subscribers, there were no fees collected from subscribers that could be refunded. “This imaginary exposure to litigation is not a legitimate basis for not paying the required franchise fees.” However, Stover proposed 2 options to allay AT&T concerns about potential litigation: (1) Refrain from itemizing franchise fees on cable modem service because federal law doesn’t require such action. Doing so won’t reduce amount company can collect from subscribers “because you can essentially set your rates at any level you choose.” (2) Agree, as alternative, to pay 5% telecom franchise fee on cable modem service. That appears to be consistent with 9th U.S. Appeals Court, San Francisco, ruling classifying cable modem service as telecom service, he said.

CARRIERS BATTLE OVER FUTURE OF RECIPROCAL COMPENSATION
January 4, 2001 by Edie Herman|Miscellaneous

With FCC overdue to act on reciprocal compensation, Bell companies and CLECs competed Wed. to present their positions to Commission and news media just in case agency schedules vote on issue at its Jan. 11 agenda meeting. If item is placed on next week’s agenda, all lobbying will have to stop tonight (Jan. 4) under agency’s “sunshine” rules. FCC hasn’t said whether it will take up reciprocal compensation at meeting, but it originally planned to vote on issue by year’s end and then deal with broader proceeding on intercarrier compensation soon afterward. “It’s ripe for decision,” industry source said.