The telecom mega-mergers’ progress in the states saw 2 major developments: N.J. regulators approved the AT&T- SBC merger with only one significant condition, but the Verizon-MCI merger hit a rough spot in Va., with the commission staff urging denial or major conditions unless the companies can show detailed specifics of how the deal would benefit Va. citizens.
Caption providers have seen their business grow as a Jan. 1, 2006, deadline nears for non-exempt new programming to be captioned in the top 25 markets. “Our business has naturally been growing by 50% to 75%,” said Jay Feinberg, dir.- mktg. services at the National Captioning Institute. His and other captioning services, such as Vitac and Caption Colorado, have noticed more business as a result of the deadline, executives said.
Canada needs a communications law and federal regulatory agency to deal with convergence of telecom and media services over broadband, the Canadian Cable Assn. (CCTA) told the govt. In a filing this week, CCTA said the Telecom Policy Review Board should: (1) Work for a unified law on telecom, the Internet and broadcasting. (2) Put communications policy-making under one federal dept. (3) Merge communications administrative and regulatory functions in one agency. “Over the next five years, the Internet will evolve from a graphic- and text- based medium into a video-based communications infrastructure that will revolutionize how consumers communicate, become entertained and receive or distribute information,” said CCTA Pres. Michael Hennessy. “Rather than amending the current Telecommunications Act which is working well, the Panel should consider how convergence will affect all communications policy by the end of the decade.” No big changes are needed short term, CCTA said, lauding today’s rules for bringing universally accessible, affordable service, plus introduction of competition in all telecom markets except local telephony. The Assn. said in a statement it urged the Canadian Radio-TV & Telecom Commission “be permitted to complete its mandate to introduce competition in the local telephone market.”
DirecTV, which wants FCC conditions on the sale of Adelphia, isn’t seeking cable ownership limits in the latest FCC rulemaking on horizontal and vertical caps. Other cable rivals, including Qwest, also said they don’t favor caps. Instead, they said they want a level playing field, as some Bells seek to compete head-to-head with cable in selling video services. Comcast, in comments similar to NCTA’s filing (CD Aug 10 p7), told the FCC limits aren’t needed to ensure competition. Yet if some media activists have their way, limits will be set.
BERKELEY, Cal. -- Comr. Adelstein characterized the FCC as “basically rewriting” the Telecom Act in 3 weeks with its DSL order. “There’s not much left of Title II after Friday,” he told the FCBA Seminar West here over the weekend, just after the FCC decision (CD Aug 8 p1).
The push for mandatory communications traffic data retention is killing industry and consumer confidence in the European Union (EU), 3 German industry groups said this week. Politicians aren’t adequately explaining the reasons for and benefits of holding Internet and telecom data, and their failure to assess the impact of such legislation is convincing citizens and businesses their concerns are being ignored, the organizations said. The Federation of German Industries (BDI), German Assn. for Information Technology, Telecoms & New Media (BITKOM) and German Carriers Assn. (VATM) disputed the need for mandatory retention and said any such obligation must be strictly limited.
The FCC voted at its open meeting Fri. to reduce regulation of wireline Internet access service by reclassifying it as an “information service,” in line with the FCC’s treatment of cable modem service. The U.S. Supreme Court in June upheld the agency’s cable modem classification in the Brand X case, triggering action on the wireline companion piece which had been placed on hold during the litigation. DSL is the most common wireline Internet access service.
Universal service fund (USF) contributions would be applied to all 2-way voice services under a bill introduced late Fri., just before the summer congressional recess. Sponsored by Sens. Smith (R-Ore.), Dorgan (D- N.D.) and Pryor (D-Ark.) , the bill broadens the base of contributors and establishes a separate fund capped at $500 million a year to encourage broadband deployment in rural, “unserved” U.S. areas.
Cities oppose the Ensign telecom bill (CD July 28 p1) on grounds it would strip their control of local franchise pacts and their power to safeguard consumer rights, the National League of Cities (NLC) said in a statement Fri. “This bill takes away most controls and protections that local governments need to monitor and ensure that the communications industry is responsible and responsive to our citizens,” an NCL spokesman said. Cities decry the bill’s proposed cap on franchise fees. By designating the FCC as dispute arbiter, they said, the bill would force local govts. to travel to Washington. Other concerns include: (1) Municipalities couldn’t charge fees for construction permits to install or upgrade facilities. (2) There’s no rate regulation for phone or video service, so companies could undercut a competitor in one neighborhood while charging more in others. (3) Video providers would have to offer only 4 PEG channels. Local govt.’s sole regulatory role would be picking the PEG channels to be used. (4) Consumer protection rules would be at the federal level, enforced by state commissions. (5) Cities would have to use a public bidding process for projects, but if a public entity were picked, any private entity would have the right to use govt. facilities such as in-ground conduits or trenches. (6) Existing govt. projects would be grandfathered unless “substantially expanded.” NLC said it will meet with members of Congress to press its case. County officials also announced their strong opposition Fri. to the Ensign bill because it weakens the local and state govt. role in communications services. “It just doesn’t make sense to preempt effective local regulation. Local franchising works, and the Ensign approach won’t,” said Marilyn Praisner, technology chmn. of the National Assn. of Counties. The American Public Power Assn. said the bill would dissuade cities and towns from investing in broadband.
A German high court ban on most preemptive tapping of phone calls, e-mail and other communications could empower opponents of retention of communications traffic data. The challenged state law, enacted by Lower Saxony, authorized police to eavesdrop on citizens and process cellphone traffic and location data, e-mails and SMS traffic even without suspicion of crime. But the Federal Constitutional Court held the law unconstitutional, saying preventive surveillance must be based on reasonable belief a specific crime is planned. At least one other state reportedly has such a law and others are said to be considering them.