FCC granted VoiceStream temporary waiver of its wireless priority access service (PAS) rules Wed., clearing way for first system of its kind for emergency and govt. users. National Communications System (NCS) is expected to award contract shortly to VoiceStream for GSM-based PAS system, which provides national security and emergency personnel priority access to wireless networks during emergencies. FCC Comrs. Copps and Martin voiced concerns about ability of consumers not on priority list to still make wireless calls during emergency. Martin issued separate statement but approved order, while Copps issued lengthy partial dissent. While backing introduction of PAS, Copps argued Commission should have “required VoiceStream to disclose to its customers the effect the PAS will have on the ability of those Americans not on a PAS list to make calls during an emergency.”

CTIA reiterated concerns about threat that Nov. 24 wireless local number portability (LNP) deadline posed to network reliability, citing emergency meeting of LNP Administration Working Group this week. In Thurs. letter to FCC Wireless Bureau Chief Thomas Sugrue, CTIA Senior Vp-Gen. Counsel Michael Altschul said group had “serious concerns” about ability of Number Portability Administration Center (NPAC) to handle volume of number ports that would result when wireless LNP was implemented. Verizon Wireless had asked FCC to forbear on Nov. 24 wireless LNP implementation deadline, same date as pooling deadline for carriers. Other carriers are asking for at least delay in that date and Commission has yet to act on requests, although it appears that it’s moving toward granting at least some relief in timing, although not complete forbearance. Altschul said LNP Administration Working Group held emergency meeting Mon. on problems related to NPAC and agreed that issues should be “further explored” in meetings next month of N. American Numbering Council working groups and worked on jointly by carriers, vendors, NPAC. “CTIA urges the Commission to defer CMRS carriers’ deadline for implementing wireless number portability until the uncertainty about the capabilities of the NPAC system is resolved,” Altschul said. He pointed to deployment of NPAC software that would allow carrier requests for full thousand number blocks to be handled as single transaction, rather than as 1,000 individual transactions. CTIA said that software would be fully available in June -- 3 months after national rollout of number pooling begins for wireline carriers. Concern of wireline and wireless carriers is that wireless volumes could overwhelm “NPAC resources and ultimately cause customer service outages.”

In report released Thurs. by National Conference of State Legislatures (NCSL), study’s authors failed to reach agreement on whether cellphone use should be restricted while driving. Report concluded that while federal law “clearly governs” equipment in motor vehicles, driver behavior -- such as cellphone use -- is solely state issue. As result, 120- page report said states should decide whether to regulate use of wireless phones and other communications, information and entertainment technology in cars. “While some thought it was a reasonable restriction to enhance driver safety, others argued it failed to address the cognitive distraction that occurs while talking on a phone,” NCSL said. “Others felt that cellphones or other specific technologies should not be singled out for regulation.” Driver Focus & Technology Partnership, which included state legislators, wireless carriers, automakers, safety groups, federal agencies and others, spent 8 months compiling study. Any new laws passed should provide enough time for customers to comply with new restrictions, study said. Among findings were that: (1) Drivers shouldn’t have access to “traditional broadcast television” or other entertainment or information devices “not intended for use while driving.” (2) School districts should provide wireless phones inside school buses, although drivers should be barred from using them except for emergencies. (3) States, safety groups and industry should work on developing “appropriate driver education” materials. (4) States should begin collecting data on accidents caused by distracted drivers on involvement of driver distractions in accidents, including uniform data criteria, collection methods, officer training. In Dec., NCSL working group met in Washington as part of driver distraction and technology forum to discuss those issues. “One side argued for restrictions on the use of specific technologies, including wireless telephones in motor vehicles,” report said. Other side contended regulation of specific technology in cars wasn’t needed because broader issue is driver distraction, meaning drivers needed to be educated as to when certain actions could be performed safely on road. “According to this position, available crash data show that wireless phones account for only a small percentage of crashes,” report said. That view says “lawmakers need better data before they act to restrict the use of any specific technology.” Agreement was inconclusive on issue of whether hands-free use of phones in cars should be required and handheld phones should be banned. Among areas of consensus were that states, not localities, should have purview over regulations of wireless phones and other technologies in cars. Study cited 1997 research by Donald Redelmeier of U. of Toronto that documented driving risks linked to cellphone use covering 699 drivers. Study concluded cellphone use while driving was associated with fourfold increase in risk of vehicle collision. Sprint, Cingular Wireless, VoiceStream Wireless and AT&T Wireless submitted comments saying that 1997 research showed association but not “necessarily causal relationship” between cellphone use and collision risk, study said.

It’s highly unlikely FTC could gain jurisdiction over common carrier regulation in this session of Congress because there’s too little time left, FTC Chmn. Timothy Muris told Communications Daily in interview. “We're trying to raise the importance of the issue,” he said: “On the other hand, we're a long way from any legislation moving.” Muris said he had held informal conversations with many on Capitol Hill about common carrier jurisdiction. He first raised issue publicly March 15, when he told Consumer Federation of America conference that FTC needed its exemption from common carrier lifted (CD March 18 p1). Legislation prevents FTC from common carrier oversight, and only Congress could give agency that jurisdiction, Muris said.

National rental spending on videogames in U.S. in week ended March 24 edged up 2.7% to $13.1 million from $12.73 million in comparable week year ago, Video Software Dealers Assn. (VSDA) said Thurs. Year to date, rental spending in category increased 11.4% to $189.8 million from $170.4 million year earlier, VSDA said. Top 2 rented games in week again were State of Emergency and Grand Theft Auto 3 for PlayStation 2 (PS2) -- both from Take- Two Interactive’s Rockstar Games. State earned additional $320,000 in week for total of $2.58 million since Feb. 2, while Grand earned $320,000 for total of $10.06 million since Oct. 1. PS2 again maintained its lead over rivals with games for Sony’s platform representing 8 of 10 top slots. While no Xbox title made its way onto list, 2 GameCube titles did -- Agent Under Fire at #6 in its first week in top 10 and Sonic Adventure 2, which dropped to #10 from #6. Only other new game in top 10 was Star Wars: Jedi Starfighter at #3, which earned $200,000 for total of $300,000 since March 2.

GSM-based pilot wireless priority access service (PAS) program will be implemented in N.Y. and Washington in May, National Communications System (NCS) Deputy Mgr. Brent Greene told James Quello Communication Policy & Law Symposium Tues. VoiceStream has partial waiver request pending before FCC and company told Commission last month it was in “final negotiations with NCS” to roll out PAS system in those 2 markets. Greene said NCS was close to finalizing competition for initial PAS capability that would have national reach by year-end, with “full operational capability” in 2003. NCS is looking at ways to broaden “and radiate out our systems to provide other kinds of networks that can be ready in the event that we have other kinds of emergencies.” Several panelists said new challenges faced policymakers involving balancing competition and consumer interests against national security concerns. On broader issue of broadband access, NTIA Dir. Nancy Victory said theme she had seen emerge among all providers was that accessing public rights of way and tower sites might be holding back network construction.

Northpoint filed FCC application late Wed. to construct 2 DBS satellites and operate as satellite-terrestrial system that would make it “stronger competitor” to merged EchoStar- DirecTV DBS companies, CEO Sophia Collier said Thurs. “With a terrestrial system, we were a good competitor,” but with merged DBS companies it would be “hard for us to compete.” Despite industry speculation that Northpoint decided to integrate system because of concerns about auction, Collier said it wasn’t “a legal reason, but a business reason” that caused Northpoint to alter its business model. She said major system upgrade would allow Northpoint to increase capacity significantly, provide faster broadband service and incorporate modular set-top box architecture that would allow outside developers to offer new services once FCC approved license. Northpoint made public no details about satellites or financing, but said it would be financed by affiliates and founders.

Despite growth in videogame sector driven by introductions of next-generation systems, national rental spending in U.S. for week ended March 17 actually decreased 4% to $13 million from $13.53 million in comparable week year ago, Video Software Dealers Assn. (VSDA) said Thurs. But VSDA said national rental spending in category increased 12.1% year to date to $176.8 million from $157.7 million. Top 2-renting videogames for week once again were PlayStation 2 (PS2) titles State of Emergency and Grand Theft Auto 3, both from Take-Two Interactive’s Rockstar Games, as Sony’s platform maintained its dominance. State earned additional $400,000 in week for total earnings of $2.26 million since Feb. 2, while Grand added $340,000 for total of $9.74 million since Oct. 1. Only new game in top 10 was Knockout Kings 2002 from Electronic Arts for PS2, which earned $190,000 in week for total of $420,000 to date. Only non-PS2 games in top 10 were again Sonic Adventure 2 Battle from Sega for GameCube, which held on to #6 position, and Wreckless: Yakuza Missions from Activision for Xbox, which slipped to #8 from #5 week ago.

ORLANDO -- One theme that emerged at CTIA Wireless 2002 here this week was need for more flexible federal spectrum policy, although govt. and industry officials pointed to new crop of questions raised by regulatory changes in that direction. “It’s an important concept and I congratulate the FCC for introducing it,” said Brian Fontes, vp-federal relations, Cingular Wireless. “However, I express a great deal of caution as you address the issue of flexibility that it doesn’t have the effect of reallocation,” he said on panel discussion. Flexible allocation issues have involved secondary markets proceeding at FCC, Spectrum Policy Task Force recently created by Commission and pending proceedings such as New ICO petition to deploy terrestrial services in mobile satellite service spectrum.

ORLANDO -- FCC Office of Engineering & Technology Chief Ed Thomas said one of spectrum questions he would like to see addressed in coming months was whether different rules applied to govt. and industry users. “One of the debates is, does the same set of rules apply to both government and industry,” he said in speech at IEEE Wireless Communications & Networking Conference here that was held alongside CTIA Wireless 2002. “Is it different in time of national emergency as opposed to normal times? There’s all sorts of debates that are extremely profound and have to be worked out.” Thomas told us later that question was among those he would like newly created Spectrum Policy Task Force at FCC to address. Commission plans to issue public notice seeking industry and govt. feedback on questions that task force should examine, he said.