Using a speech at the National Press Club as his latest platform to warn against too much regulation of IP telephony, FCC Chmn. Powell Wed. challenged proregulation forces to prove such action was needed. “The burden should be on the government to show if regulation is needed, not the other way around,” he told journalists and communications industry officials. While the speech didn’t break new ground, it led one audience member to note privately that Powell had repeated this message in several speeches recently, possibly indicating the need to convince industry officials and other regulators, including other members of the Commission, of the wisdom of light-touch regulation.
The FCC asked for comments on whether certain rules applying to the operations of telecom service providers should be repealed or modified because they were “no longer necessary in the public interest as the result of meaningful economic competition.” The Commission released a notice of proposed rulemaking as part of its biennial regulatory review of regulations administered by the Wireline Bureau. It asked for comments on whether it should continue to require carriers to file annually FCC Form 395 and the report of employment-related discrimination complaints. It also sought comments on some of its rules on: (1) Jurisdictional separations procedures. (2) Implementation of Secs. 251 and 252 of the Communications Act. (3) Telephone numbering. (4) Implementation of Sec. 272. (5) Requirements in Sec. 271 of the Act. (6) Universal service. In a separate statement, FCC Comr. Copps questioned the wisdom of seeking comment on the continuing need for Sec. 1.815 of the Commission’s rules: “How can it be that at a time when we are trumpeting the significance of our Advisory Committee in Diversity of Communications in the Digital Age, we also are suggesting that information gathering about the diversity of the telecommunications work force is no longer in the public interest? It looks like one hand of the agency is not talking to the other.” He said the information collected under that rule was “exactly the kind of granular data the Committee will find useful to complete its mission. I fear efforts like this one may emasculate this new group and make their already difficult tusk more complex.” Comments are due 30 days after publication in the Federal Register, replies 15 days later.
The Cal. Commission on Tax Policy in the New Economy decided not to act on several telecom, TV and DBS tax issues, in a recently issued report. The report did recommend unspecified tougher measures to enforce collection of existing taxes on Internet purchases.
Two former Clinton Administration officials were credited last month with saving a rural broadband loan program, but due to a shortage of funds among the effort’s beneficiaries, their lobbying efforts were performed free of charge. Former NTIA Dir. Greg Rohde and former Rural Utilities Service (RUS) Dir. Christopher McLean in 2003 grossed more than $200,000 from companies involved in rural broadband issues, Rohde revealed last week in lobbying disclosure filings with the Secy. of the Senate. However, he told us that the lobbying he did in the Senate to save the RUS broadband program was done pro bono, as the lead entity in the effort, the Wireless Communications Assn. International (WCAI), couldn’t afford to pay them, a difficulty confirmed by WCAI Pres. Andrew Kreig.
While the treatment of voice-over-Internet protocol (VoIP) services is a “front burner issue” for regulators, both the FCC and the states have been taking action on it, including initiating proceedings, for several years, law firm Lampert & O'Connor said in a white paper issued Tues. It said the FCC’s 1998 Report to Congress, in which the Commission first addressed the regulatory classification of VoIP services, and newly pending FCC dockets would form the “basis” of the forthcoming rulemaking, as well as state actions on VoIP. In the Report to Congress, the FCC generally concluded that it was not necessarily appropriate to subject VoIP services to federal telecom regulation at that time and confirmed the agency’s earlier statutory interpretation that “telecommunications” and “information” services were mutually exclusive terms under the Communications Act. While the FCC indicated then that if VoIP looked and operated like traditional telephony, it should be treated like telephony, it stopped short of making any final pronouncement, instead offering a general framework for specific decisions yet to come. The Report distinguish between 2 types of services: (1) Computer-to-computer VoIP. (2) Phone-to-phone VoIP. The white paper reviews state and federal regulatory actions involving VoIP services and provides an overview of the key issues facing regulators, VoIP service providers, consumers and competitors -- www.l- olaw.com.
The National Wildlife Federation (NWF) and other environmental groups asked the FCC to order its Wireless Bureau to conduct environmental analyses under the Endangered Species Act (ESA) and the National Environmental Policy Act (NEPA) before approving tower projects. NWF, the Mich. Audubon Society, Copper Country Audubon Club and Upper Peninsula Environmental Coalition filed an application for review at the FCC last week. Last year, NWF told the Bureau insufficient environmental analyses were done before tower construction and as a result the FCC was violating the ESA and NEPA. The group asked that the agency immediately conduct environmental assessments on 3 towers and evaluate the cumulative impacts of the tower permitting system on migratory birds and endangered species. The Bureau turned down those claims last month, saying the Mich. State Police and U.S. Fish & Wildlife Service (FWS) were conducting an avian collision study. (The FCC over the last few years has authorized the Mich. State Police to construct 181 towers across the state.) NWF told the FCC in its latest filing that the Bureau incorrectly had held that performing environmental assessments before the avian study was complete would be premature. “Postponing these analyses creates unacceptable risks to the endangered Kirtland’s warbler and other migratory species and violates the ESA and NEPA,” NWF said. It asked the FCC to “order the Bureau” to perform environmental analyses under ESA and NEPA and to consult with FWS. The group asked for a review of: (1) Whether the Commission violated the ESA by approving towers in and around the habitats of listed species “without conducting an assessment of impacts on the species and without consulting with the U.S. Fish & Wildlife Service regarding those impacts.” (2) Whether the FCC violated NEPA by approving towers in and around the habitats of migratory birds without first conducting an assessment of impacts on the birds. NWF took aim at an unpublished letter last month in which the Bureau concluded it didn’t have to analyze the environmental effects of Mich. State Police communications towers and ESA and NEPA until after the 2-year avian study was performed. The Bureau said its tower authorizations were categorically excluded from NEPA. NWF said its members lived near the towers, bird-watched in areas near certain towers and “are concerned about the economic impacts on ecotourism that would directly impact their economic livelihood.” The application for review said the “FCC’s failure to assess the impacts of the towers on the Kirtland’s warbler and other migratory birds has harmed these members’ esthetic, recreational and economic interests.” The groups told the FCC that if reviews under NEPA and ESA were to show that a particular tower harmed the birds, the Commission had the authority to order that the tower be removed or that the harm be mitigated. The groups contended the FCC was made aware in advance of the towers’ construction of the potentially harmful effect on nonlisted migratory birds as well as 4 ESA-listed species, but didn’t conduct reviews before licensing them.
The FCC released a notice of proposed rulemaking on sharing between satellite services -- including nongeostationary satellite orbit (NGSO) and geostationary satellite orbit (GSO) fixed satellite service (FSS) operations -- and 3 other services -- fixed services (FS), broadcast auxiliary services (BAS) and cable TV relay services (CARS). The final rules would apply in the 7 GHz, 10 GHz and 13 GHz bands, the Commission said: “We undertake this proceeding to facilitate the introduction of new satellite and terrestrial services while promoting interference protection among the various users in these bands.” The Commission proposed the following: (1) NGSO FSS downlink operations sharing with FS operations in the 10 GHz band based on a Growth Zone Proposal by SkyBridge/Fixed Wireless Communications Coalition (FWCC). It suggested identifying FS growth zones based on geographic areas where “FS use is high and growth is most likely to occur.” The Commission’s proposal would qualify counties as growth zones “where at least 30 FS frequencies are licensed to transmit in the 10.7-11.7 GHz band.” Zone determinations would be made individually, rather than every 6 months, as NGSO FSS earth station applications were submitted to provide a “near real- time” element to the process, the FCC said. Coordination also would adopt proposals determining where the earth stations should be located, who would be protected from interference and how coordination would be determined. (2) Coordination between NGSO and GSO FSS earth stations and mobile BAS and CARS operations in the 6875-7075 MHz and 12750-13250 MHz bands. The Commission said it would apply existing coordination rules from Parts 25 and 101 of its rules to the bands and consider additions or modifications. It said it also would determine whether additional rules needed to be applied separately to FSS coordination with mobile or fixed BAS/CARS operations. Comments are due 30 days from publication in the Federal Register, replies 45 days from publication.
The FCC approved applications related to WorldCom’s reorganization out of bankruptcy as the newly formed MCI, including assignment or transfer of Sec. 214 authorization, Sec. 310 licenses and submarine cable landing licenses. The Commission said its approval was required for WorldCom’s debtor-in-possession reorganization and emergence from bankruptcy to move forward. Since petitioning for bankruptcy, MCI “has aggressively rid itself of the individuals who allegedly committed acts of corporate fraud and has substantially reformed the corporate structures and policies that enabled such alleged fraud to occur,” the agency said. “In the aftermath of public revelations concerning WorldCom’s accounting problems,” the Commission said it had reviewed the qualifications of WorldCom and MCI in the context of the license and authorization transfers to the newly formed MCI. “The Commission has an obligation to undertake its own independent assessment of whether an applicant has the basic qualifications to be a Commission licensee, but we see no reason here to second-guess the extensive corporate governance reforms made under the careful review and special expertise of expert agencies including the SEC and the federal courts that have been involved in proceedings related to WorldCom’s proposed reorganization.” On matters of corporate governance in the case, the FCC said it gave “due attention” to the extensive review of several other expert federal agencies and courts. “Although final decisions on liability for the acts committed under the prebankruptcy WorldCom continue to proceed in other fora, the applicants have established that granting their applications is in the public interest,” it said. As a threshold matter, the Commission said it had to determine whether the applicant was qualified to hold and transfer control of licenses under Sec. 310(d) of the Communications Act. It said the underlying public interest concerns in the broadcast arena, such as indecency regulation, didn’t apply with equal force to common carrier facilities, “where content is divorced from conduit.”
Cable operators generally were pleased with the conditions the FCC placed on News Corp.’s acquisition of Hughes Electronics and DirecTV, having feared the newly combined company would use its leverage to shut cable operators out of some programming. In a joint statement, Advance/Newhouse, Cable One, Cox and Insight said the arbitration mechanisms imposed by the FCC had “greatly reduced the danger that the transaction itself will do harm to consumer prices.” The 4 companies had joined forces in filing comments on the deal, and together they still worried that News Corp. would remain a “formidable presence.” EchoStar congratulated News Corp. on its purchase but said consumers can “count on” its own Dish Network to offer an alternative to “goliaths such as Time Warner, Comcast, and now News Corp.”
Crucial govt. agencies should have redundant telecom systems for emergencies, the Progress & Freedom Foundation (PFF) said. In a report, PFF Senior Fellow Randolph May said the Dept. of Homeland Security or General Services Administration should issue guidance by regulation, bulletin or guideline. “Many federal agency buildings and installation locations apparently do not currently have true telecommunications network redundancy installed in their buildings,” the report said: “Served by a single connection running through a single outside communications central office or switching hub, many are too vulnerable.” May said a Feb. 2003 White House white paper, “The National Strategy for the Physical Protection of Critical Infrastructure and Key Assets,” and a recent Markle Foundation report had called for more redundancy in federal buildings. May said some progress had been made upgrading and securing communications, but “more needs to be done, and it is especially important that the federal government itself takes steps to ensure that it has built into the communications networks upon which it relies sufficient redundancy to maintain the availability and continuity of communications in times of crisis.” Communications lines to buildings must be “physically separate, by a significant distance, from the facilities of the incumbent provider,” he said. There must be separate rights-of-way between the building and the routing center, and redundant services should use a physically separate switching or routing center, the report said. May told us that information about redundant systems at govt. buildings was difficult to find, and he didn’t know whether that was for security or whether the govt. had taken a comprehensive look at redundancy. May’s report did say the govt. should prioritize any efforts to establish redundant communications systems. For instance, the Center for Disease Control is a higher priority than the Consumer Product Safety Commission. The report said the 1996 Telecom Act and its encouragement of network sharing had had an impact on construction of redundant networks. May and PFF have argued in favor of deregulating local phone rates and abandoning RBOC sharing requirements, such as UNE-P (CD Dec 15 p1).