Money for research and development and aid to utilities adopting smart-grid technology under a 2007 federal energy law is expected to spread broadband over power lines, state regulators said. But they derided provisions in the law that tell state commissions to look into smart grid implementation and let utilities recover BPL deployment costs through rates. “Those are things that state commissions are doing anyway,” said Tony Clark of the North Dakota Public Service Commission. “That is a lot of window dressing that Congress put on to make it feel good,” said Clark, who heads NARUC’s telecommunications committee.
What “open access” means depends on who’s defining it, advocates, analysts and wireless industry officials told Communications Daily. Following news in November that Verizon Wireless would open its network to all devices and applications (CD Nov 28 p2), officials from the Bell’s three largest rivals said their networks were open already. The top four carriers give different reasons for calling themselves open, but open access advocates say no U.S. operator measures up.
FCC action on early termination fees (ETFs) is expected early in 2008, with the commission expected to refocus at least in part on telecommunications issues following a major fight over media consolidation. The Universal Service Fund, 700 MHz auction, future use of the broadcast white spaces, and 800 MHz rebanding also are expected to get agency attention.
Communications and Internet companies have given $47,000 in PAC contributions to Sen. John McCain, R-Ariz., for his 2008 presidential run, a pittance compared with the total $30.4 million McCain has amassed. But that’s the most the industries have given to any candidate this campaign, according to CQ’s Political Moneyline and Federal Election Commission reports. The communications industry will give much more as the contest heats up if historical patterns hold.
Solicitor General Paul Clement recommended against Supreme Court review of a key appeals court decision that dealt wireless carriers a major defeat in their fight for uniform federal regulation. Clement said the 11th Circuit’s August 2006 decision (CD Aug 2/06 p1) in a truth in billing case was in error but the high court doesn’t need to step in. The court usually gives considerably weight to solicitor generals’ opinions when deciding whether to hear a case.
The FCC approved a $16.4 billion transfer of control of Intelsat from a private equity group controlled by Apax Partners to Serafina Partners, a unit of BC Partners. The deal includes $11.4 billion in Intelsat debt. “No party has challenged the basic qualifications of Serafina, and nothing has come to our attention that would disqualify Serafina on the grounds that it lacks the technical, legal or other basic qualifications necessary to be a commission licensee,” the FCC said. The transaction won’t “change the competitive landscape in the fixed satellite services market,” it added. The FCC conditioned the transaction on Serafina’s upholding national security commitments it made in October (CD Oct 23 p12). Intelsat and Serafina told federal agencies they would keep living up to agreements made in the Zeus and PanAmSat transactions. Intelsat was pleased with the FCC’s action. “It came in almost to the day of when we were hoping it would,” a spokeswoman told us. FCC Commissioner Michael Copps didn’t object to the transaction but complained the agency hadn’t done a comprehensive review of the effect of private equity deals on the communications industry. “We need to start looking at these important questions and we need to do so quickly,” he said. “We simply cannot discharge our public-interest responsibilities in a piecemeal fashion.” Intelsat awaits approval by the Bermuda Monetary Authority, which it expects “in the near future,” spokeswoman said. The terms call for the deal to close within 24 business days of approval in Bermuda.
The Swiss Federal Communications Commission (ComCom) retroactively lowered Swisscom interconnection charges an average of 15 to 20 percent from 2004 to 2006, a Swisscom press release said. Swisscom had set aside 449 million Swiss francs (US$389 million) for the period 2000 to 2007 should the regulator find its prices too high. The provisions probably exceed any repayments, so 2007 operating income will see a positive impact, Swisscom said. The cuts left Swiss prices among Europe’s lowest, Swisscom said. An appeal may be filed within 30 days. In two rulings, the ComCom decided Swisscom Fixnet AG overcharged contractual partners for interconnection services in the fixed-network from 2004 to 2006, ComCom said. COLT Telecom AG and Verizon Switzerland AG asked in 2004 that ComCom set interconnection conditions. Verizon Switzerland and COLT Telecom can demand reimbursement of excess payments from Swisscom. Swisscom prices violated some all regulations, ComCom said.
The FCC should confirm that Inmarsat employees are barred from communicating with Stratos Global officials, Vizada said Thursday. The FCC Dec. 7 approved the first step in a deal involving Inmarsat, Stratos Global, Robert Franklin and Communications Investment Partners of Canada. Inmarsat is financing CIP’s $275 million acquisition of Stratos. Inmarsat has an option to buy Stratos in April 2009, after their distribution agreement expires (CD Dec 11 p1). The transaction closed Tuesday. “The risk exists that Inmarsat and Stratos Global will engage in prohibited communications on the hyper-technical theory that the ordering clauses do not expressly forbid them,” said Vizada, which distributes Inmarsat’s and other satellite services. The FCC can issue “a very brief erratum or further order with a supplemental ordering clause,” Vizada said. The company, which opposed the transaction, still believes the FCC erred in approving it. “Inmarsat has stepped far over the line here based on its financial levers, contractual rights and ability to exert influence over fundamental Stratos Global business policies, notwithstanding the restrictions on communications imposed by the commission,” Vizada said. Vizada still is deciding whether to ask the FCC to reconsider the approval or to appeal the decision in federal court, it said.
A federal appeals court allowed Verizon and AT&T to support the FCC defense against Cablevision, which has asked the court to review a commission order extending by five years some of its program-access rules, filings at the U.S. Court of Appeals for the District of Columbia Circuit show. Verizon and AT&T also had lobbied in favor of extending the FCC ban on exclusive contracts for carriage of networks owned by cable operators. In October, Cablevision appealed Sept. 11 FCC order as exceeding commission authority and violating the 1934 Communications Act, the Administrative Procedure Act and the U.S. Constitution. “Congress did not intend for the program access rules to last for decades,” a Cablevision spokeswoman said. “Now, with three to five video competitors in many markets, a blanket application of these rules is no longer appropriate.”
A digital TV order requiring broadcasters to air public- service ads has been held up on the FCC’s eighth floor because of commissioners’ concerns and many higher priorities, agency sources said. A proposed order was circulated by Chairman Kevin Martin in mid-October (CD Oct 18 p7). But at least two commissioners haven’t voted on it, the sources said.