The Alaska Supreme Court reversed and remanded an Alaska Regulatory Commission (ARC) decision to eliminate the rural competition exemption for Alaska Communications Systems (ACS) in Anchorage, Fairbanks and Juneau. The top state court (Case 5762) said the ARC incorrectly placed the burden of proof on ACS to show a need to keep the exemption, rather than on General Communications Inc. (GCI), a competitor that sought removal of the exemption. The case had its roots in a 1997 decision by the ARC’s predecessor agency, the Alaska PUC, to keep ACS’s rural exemption. GCI appealed and the case wound its way through the state courts including a 1999 remand that ended in ACS’s losing its rural exemption. When the PUC was terminated and replaced by the ARC, ACS asked the new agency to review its predecessor’s decision. The ARC in 1999 reaffirmed termination of ACS’s rural exemption, but ACS appealed, losing in the lower state courts. The state Supreme Court cited federal court rulings that removed the burden of proof from the incumbent. The court said the ARC should reconsider its ruling, with the burden of proof on GCI to show that ending ACS’ rural exemption wouldn’t impose undue economic burdens on the carrier, wouldn’t create serous technical problems and wouldn’t impair universal service. The court said the ARC was free to compile a new record and wasn’t bound by the record of the 1999 case.
A group of academics urged the FCC Tues. to produce a clear national regulatory structure soon to ensure voice- over-Internet protocol (VoIP) growth. Speaking via teleconference, authors of a report by the New Millennium Research Council (NMRC) called for the Commission to: (1) Subject VoIP applications that functioned like telephone services to certain telephony rules. (2) Regulate all VoIP service providers equally. (3) Ensure that statutory social responsibilities were met. All 6 authors said they hadn’t been compensated by any involved parties for submitting their papers to the NMRC.
Cable VoIP will provide the facilities-based phone competition sought for so long, Comcast CEO Brian Roberts told San Francisco’s Commonwealth Club, suggesting regulators would get out of the way rather than burden the incipient business. Policy-makers should maximize competition between converging industries, dismantle traditional regulation and handle unanticipated consequences as they occur, Roberts said in an appearance overshadowed by his industry’s recent Western Show. “It’s got to be challenging for regulators all over the country, and certainly at the Federal Communications Commission, to figure things out,” with industry boundaries breaking down fast, he said. Comcast will test VoIP in 3 markets in 2004, “to take it from pretty good to world class,” Roberts said: “We're not interested in businesses that are me-too. Our goal is to take it to a place it hasn’t been before. So, rather than be first, we'd rather be unique.” Comcast will differentiate itself from telcos with inexpensive deals on 4 lines, since they don’t cost the provider more than one, and video enhancement of service comparable with instant messaging, Internet chat or voice mail, he said. As for video-on-demand, Comcast is using the PVR’s rise and vulnerability to pirates to pry licensing deals out of programmers, he said. “If I were a big content company, I would be looking at the music experience and saying the customer wants what they want, when they want it… We've had resistance from the content companies licensing video-on-demand. [But cable is] totally secure, never been hacked… We've been using that to compel content owners to license video-on-demand, which is going to happen because it’s so much in their interests.” Uptake has “been fantastic” in Philadelphia testing, he said. With 800,000 set-top boxes enabled, the company received 1 million orders the week before Roberts spoke, and 50% of the customers had used the service the previous 30 days, he said. Some 200 pay-per-view movies are available, although “they may be 90 days after Blockbuster” has them. But Comcast wants to charge for as little on-demand programming as possible, to differentiate itself from satellite, and offers 1,000 hours of TV shows at no extra cost, Roberts said.
With scientific data inadequate to support federal Fish & Wildlife Service (FWS) voluntary guidelines on communications tower siting, PCIA said, some states already were using them “as a precedent.” A PCIA spokesman said that while the guidelines were “not official… some states have taken them as being a gospel, and we don’t like that.”
The FCC’s Network Reliability & Interoperability Council (NRIC) voted Fri. to adopt more than 300 best practices aimed at enhancing reliability and security of the U.S. telecom networks in times of emergency. Although the vote marked the last meeting of a 2-year initiative, members have until Dec. 12 to submit their written comments. “The set of homeland security best practices adopted by the Council will guide the industry in fulfilling its commitments with its customers and with one another -- to engineer and operate the most reliable, robust communications service network in the world,” FCC Chmn. Powell said.
Under new broadcast license renewal procedures, licensees must certify that they have complied with federal requirements, such as children’s programming mandates or maintaining public files. NAB Thurs. urged broadcasters that thought they might have broken a rule to resist any temptation to lie, and confess the violation.
FCC Chmn. Powell gave early indications of his thinking about a regulatory regime for Voice-over-Internet Protocol (VoIP) Mon., saying he saw consensus that the service might be deemed “interstate” in nature and that concerns about VoIP were focused on 4 or 5 discrete issues. His comments to reporters came after an FCC forum on VoIP that featured industry leaders, state public utility commissioners and others.
FCC sources said the Media Bureau late Tues. sent a version of the decision on the proposed News Corp. acquisition of Hughes Electronics and DirecTV up to the commissioners for their consideration over the holiday weekend. A decision is expected via circulation. They said the bureau also sent up the annual video competition report, which typically is released to the public in Dec. Meanwhile, 4 federal agencies told the FCC in a letter that they wouldn’t object if the Commission granted News Corp. and GM the ability to complete their proposed deal under certain conditions. The Dept. of Defense (DoD), the Dept. of Homeland Security (DHS), the Dept. of Justice and the FBI asked Hughes Electronics to amend the section of its bylaws on its audit committee to clarify that all members were U.S. citizens. The agencies asked that the committee have authority over certain actions, including: (1) Requests from a foreign govt. or other foreign entity to conduct electronic surveillance on a domestic communications network. (2) Requests from foreign entities on operations of domestic communications networks. (3) Corporate decisions on document preservation requests from any U.S. govt. agencies involving a domestic communications network. (4) Requests from foreign entities to preserve, store or destroy documents related to domestic communications requests. (5) Attempts by foreign entities to coerce employees to break U.S. laws. (6) Corporate decisions relating to compliance with “lawful U.S. process.” The agencies also asked the News Corp. board to adopt proposed resolutions acknowledging changes in the Hughes bylaws. In a filing with the FCC, the agencies said the proposed commitments “are adequate to ensure that the executive agencies and other entities with responsibility for enforcing the law, protecting the national security and preserving public safety can proceed in a legal, secure and confidential manner to satisfy these responsibilities.” Jeffrey Chester, exec. dir. of the Center for Digital Democracy (CDD), said the letter was an indication of how the agencies would judge the antitrust issues of the merger. He said that regardless of whether the audit committee was composed of U.S. citizens, it would “simply do his [Rupert Murdoch’s] bidding.”
The current World Radiocommunication Conference preparation and interagency process “needs only a ’tune-up,’ not a major overhaul,” N.Y. Satellite Industries (NYSI) and Final Analysis Communications Services (FACS) told the NTIA. The agency had asked for comments on the process and agency coordination (CD Oct 24 p6). NYSI and FACS said much of the criticism of NTIA and FCC implementation of WRC items was outdated. They said coordination on their issue, the operation of Little LEO systems and incumbent federal users of the 1.4 GHz band, and others was an example of the “positive and instructive” preparation process the agencies had implemented recently, resulting in WRC-03 adoption of Little LEO feeders links in the 1390-1392 MHz and 1430-1432 MHz bands. If anything, they said, “a more streamlined process” for implementing WRC decisions, “where appropriate, would better serve the public interest. Once an international allocation is added, applicants should be free to seek an assignment of the allocated frequencies. This will allow the Commission to review individual applications to ensure that the public interest is served by the licensee’s use of the spectrum as allocated.”
Several weeks after CTIA announced its wireless industry voluntary consumer code program and the seal of wireless quality (CD Sept 10 p2), there has been “tremendous” progress in wireless carriers’ seeking to use the seal, CTIA Asst. Gen. Counsel Andrea Williams said Thurs. Addressing the FCC Consumer Advisory Committee, she said the seal had become “a competitive issue for [carriers]. So, having the impact that we hoped it would, this is going to be an area where [members] are going to be competing for consumers.”