The FCC has another reason to oppose Verizon forbearance petitions for 6 East Coast cities (CD March 6 p1), 4 competitive providers told the agency, citing “Verizon’s misuse of confidential information.” The competitors told the FCC “the supporting data… includes E-911 listings disclosed to the Commission by Verizon in violation of federal and state laws.” Verizon was the E-911 PSAP in 5 of the 6 cities, and until March 2005 had that role in the 6th, Virginia Beach, the competitors said. As PSAP, Verizon had access to competitive providers’ confidential information, the companies said: “In those five MSAs, Verizon’s competitors have entrusted it, pursuant to confidential treatment, with sensitive proprietary data, i.e., their customers’ names and contact information. Verizon relies, to a significant extent, on information culled from the E911 databases to support all six of its petitions.” Verizon’s filings also rely on a “framework” the FCC used in approving a similar forbearance petition involving Qwest in Omaha but “interested parties have been denied the right to use the unredacted Omaha Forbearance Order to analyze and respond to Verizon’s claims,” they said in comments filed Mon. “Moreover, this data does not accurately reflect the nature and scope of competition within the wire centers for which forbearance is requested by Verizon,” they said. The comments were filed by Broadview Networks, Covad, NuVox and XO Communications. In Oct. 15 CLECs filed a motion to dismiss the Verizon forbearance petitions based on the use of confidential data.
The White House is unhappy at network interoperability provisions in a bill (S-4) set for a Senate vote next week. Implementing changes proposed for NTIA’s $1 billion interoperability fund would “undermine the Administration’s ability to implement the most effective program,” said a Statement of Administration Policy (SAP) on S-4, an omnibus measure encompassing 9/11 Commission recommendations that appears headed for trouble with the Administration.
Cyren Call considers itself in a long term audition to run a proposed public safety broadband trust but expects competition, Cyren Call founder Morgan O'Brien said in an interview for C-SPAN’s series “The Communicators” that was set to air over the weekend. O'Brien conceded that time is running short, with the 700 MHz auction expected to start as early as this summer. Meanwhile, Sen. McCain (R-Ariz.) made good on a promise to introduce legislation that would set aside 30 MHz of 700 MHz spectrum for a public-safety broadband network.
Broadcasters and consumer groups complained that an XM- Sirius merger would harm consumers, but Sirius said a combined company would increase competition, at a hearing Wed. of the House Judiciary Committee’s new Antitrust Task Force. The deal “should raise a red flag for the Department of Justice and the Federal Communications Commission whose job is to promote competition and consumer choice in the marketplace,” said Gene Kimmelman, vp-Consumers Union.
A Cingular request to be certified for universal service payments in Ga. drew strong opposition from the wireline industry, in comments filed Tues. at the FCC. Verizon said Cingular’s application for designation as an eligible telecom carrier (ETC) “is further evidence of the urgent need for reform of the High Cost Fund… Cingular’s own business strategy demonstrates that it does not need federal subsidies to offer service in Ga.” Frontier Communications said Cingular already provides service in Ga. without high cost support, “having been motivated to do so by the economic forces of profit and competition with other providers.” TDS Telecom said Cingular’s petition “makes little effort to demonstrate that it will use universal service support to serve the high-cost customers for which the Fund was intended.” Giving Cingular ETC status “will trigger an ‘arms race’ among other national wireless carriers to seek ETC designation,” Frontier said. The Independent Telephone & Telecom Alliance (ITTA), filing jointly with the Western Telecom Alliance, urged the FCC to judge Cingular’s petition “in the context of the larger proceeding on universal service reform.” Otherwise, the FCC “will continue to make within the context of ETC applications incremental decisions toward one direction, while at the same time considering universal service modifications that take a far different direction,” the groups said, referring to Cingular’s seeking ETC status in Va. OPASTCO said “the costs of [Cingular’s] designation would far outweigh any benefits to the public… As the largest wireless carrier in the United States, Cingular’s designation as an ETC in Ga. and other states could ultimately cause the High-Cost universal service program to reach an unsustainable level, thereby jeopardizing rural ILECs’ provision of affordable, high-quality, ubiquitous service to rural consumers.” CTIA said Cingular “meets the requirements for designation as an ETC” because it’s not subject to jurisdiction by state regulators. Sec. 214 of the Telecom Act gives the FCC authority to grant ETC status to carriers that aren’t governed by state commissions, Cingular said: “Since Cingular is a commercial mobile radio service (CMRS) provider not subject to the authority of the [Ga. PSC], the FCC has the authority to grant ETC status to Cingular.” CTIA said it supports the petition, noting the wireless carrier offers all 9 services required by the FCC for ETC status. “Cingular has committed to use available federal high-cost support for its intended purposes -- the construction, maintenance and upgrading of facilities serving the high-cost and rural areas,” CTIA said.
Imposing a $267 million fine against Swisscom Mobile, Switzerland alleged misuse of mobile phone termination rates from April 1, 2004, to May 31, 2005, the Swiss Competition Commission said Fri. Swisscom rejected the charge that it misused its dominant market position, declaring it will not pay the fine, Swisscom said. Swisscom Mobile has had the lowest mobile termination fees of any Swiss mobile provider, and it has no advantage over the other mobile phone providers because of the termination fees, it said. It’s inconsistent with the European context for the Competition Committee to classify Swisscom Mobile as dominant, since “all providers (or none) were assumed to have a dominant market position on the basis of call termination in their network,” Swisscom said. A Nov. 20, 2006, Competition Committee report to the Communication Commission said Switzerland’s 2 other mobile phone providers, Sunrise and Orange, have dominant market positions, Swisscom said. “The fact that Swisscom Mobile achieved very high benefits from the violation was considered as an aggravating factor for the calculation of the fine,” the Competition Commission said. Swisscom will dispute the ruling before the Swiss Federal Administrative Court and if necessary, before the Federal Court, it said.
Phased-in competitive bidding could slow the growth of the Universal Service Fund (USF) while easing concerns of incumbent rural telcos about shortfalls, Verizon and Verizon Wireless told the Federal-State Joint Board on Universal Service in a proposal filed late Fri. The Joint Board is expected to consider Verizon’s proposal at a Feb. 20 meeting during the NARUC winter meeting in D.C. The Joint Board plans to look at competitive bidding and other ideas for easing demands on the USF during that en banc meeting. The board includes FCC Chmn. Martin, Comrs. Tate and Copps and several state commissioners.
A federal appeals court indicated it may ask the FCC to reconsider parts of an order requiring VoIP providers to contribute to the Universal Service Fund. A 3-judge panel of the U.S. Appeals Court, D.C. questioned possible disparities in the FCC’s treatment of VoIP carriers in relation to other telecom carriers and asked the agency for legal justification for several sections of the order approved last summer (CD June 22 p1), during oral argument Fri.
Mark Keam leaves staff of Asst. Senate Majority Leader Durbin (D-Ill.) to be Verizon vp-federal govt. relations… Peter Currie resigns as Nortel CFO, effective April 30… L-3 Communications promotions: David Butler to senior vp- business operations; Curtis Brunson to senior vp-corporate strategy & development… SuddenLink changes: John Fuhler promoted to senior vp-fiscal operations; Dale Bennett promoted to central region vp, replacing Todd Cruthird, moving to Tex.-Okla. region vp… Marc Montagner, ex-Sprint Nextel, to head telecom mergers & acquisitions at Bank of America… Joel Vilmenay, KETV Omaha, moves to WDSU-TV New Orleans as gen. mgr… New at NTIA: Meredith Baker promoted to deputy asst. secy.; David Murray promoted to senior advisor to NTIA Dir. John Kneuer; Todd Sedmak, ex- Federal Energy Regulatory Commission, becomes communications dir… Pekka Ala-Pietila, ex-Nokia, joins board of VoIP firm HelloSoft… Won-Gil Choe, Stanford Venture Group, joins Nayna Networks board… ABC Entertainment promotes Steve Kern to vp-program planning & scheduling.
A 3-judge federal panel indicated Tues. it probably will uphold an FCC decision to lessen Qwest’s unbundling requirements in select Omaha wire centers, despite challenges from competitors and Qwest itself. The U.S. Appeals Court, D.C., panel asked plenty of questions during an oral argument, but appeared skeptical about the answers from attorneys challenging the FCC order. “I think they are going to affirm” the FCC’s order, said an attorney who sat in the audience, as another shook his head in assent.