Wash. state regulators refused to reconsider their July 1 decision to endorse Qwest’s Sec. 271 bid for interLATA long distance entry. Wash. Utilities & Transportation Commission denied petitions for reconsideration filed by AT&T and Covad Communications. Carriers wanted WUTC to reconsider its support in light of criminal investigation into Qwest business conduct by U.S. Attorney and 2nd probe by House Energy & Commerce Committee. They contended pending criminal probe, congressional investigation plus charges that Qwest made secret deals with its competitors to remove their opposition to its regulatory initiatives all were highly relevant to company’s compliance with Telecom Act. WUTC disagreed, saying federal investigations into Qwest corporate and financial practices weren’t relevant to central Telecom Act question whether Qwest’s local markets were fully and irreversibly open to competition. WUTC said it wasn’t persuaded that unfiled Qwest-CLEC agreements in Wash. affected openness of Qwest’s local markets. AT&T had planned similar reconsideration petitions in Mont., Utah and Wyo., whose votes last week to support Qwest prompted carrier to file its July 12 applications at FCC. But AT&T said it had changed its plans and would take its concerns directly to FCC.
State regulators Wed. reiterated their position that they be free to modify any FCC national list of unbundled network elements (UNEs) that incumbent telcos must offer to their competitors. In teleconference with reporters, several regulators also called for establishment of federal-state joint conference on UNEs to ensure FCC and states didn’t start working at cross purposes. Wed. was deadline for reply comments in FCC’s triennial UNE review. In comments filed late in day, consumer groups and CLECs also urged Commission not to reduce number of mandatory national UNEs or allow any new restrictions on UNE availability. ILECs on other hand, said it was clear that UNEs weren’t as vital as they once were.
FCC Chmn. Powell, in news conference after Tues. agenda meeting, described how Commission was adjusting to economic environment in which telecom bankruptcies were becoming more common. Commission has been examining procedures that allow it to pass information on to other federal agencies “should something come coincidentally into our possession that would raise questions about violations of securities and banking laws,” he said. To that end, FCC is examining proposing formal memoranda of understanding with SEC and potentially other agencies that would help to make routine process by which such information was made available. Powell said such MOU arrangements had been made in other policy areas, including EEOC-related issues. Addressing WorldCom’s scandal, Powell told reporters it didn’t appear that “the possibility of significant disruption of services is imminent. We don’t think the current financial troubles, even if they lead to a bankruptcy situation, present a catastrophic situation for consumers.”
Senate Commerce Committee appeared to support Jonathan Adelstein for open FCC Democratic seat after cordial hearing Tues. Committee hasn’t set date for vote, spokesman said. Adelstein, telecom aide to Senate Majority Leader Daschle (D- S.D.), emphasized rural issues during hearing, particularly deployment of broadband, maintenance of universal service fund and improved management of spectrum. “We can’t deploy broadband fast enough,” Adelstein said. Commerce Committee Ranking Republican McCain (Ariz.), whose possible hold had threatened to delay confirmation, called Adelstein “a fine young man.” McCain has threatened holds on all nominations until candidate for Federal Election Commission is approved.
SAN FRANCISCO -- Internet not only is undercutting rural telcos’ regulatory-based revenue sources, but also is shifting their policy focus away from states, industry conference heard here Mon. As e-mail, instant messaging and Web-based services, along with cell calls, increasingly supplant wireline voice and fax communications, local incumbents’ access revenues plunge correspondingly, compounding regulatory reductions in access rates, Chmn. Robert Riordan told convention of OPASTCO.
Public safety groups and Motorola urged FCC to adopt channelization plan that could accommodate 802.11 technologies in part of 4.9 GHz recently allocated to public safety operations. But several commenters on proposal that would clear way for high-speed digital technologies for emergency communications in band differed on who should be eligible to use that spectrum beyond “traditional” public safety entities. Representing critical infrastructure providers such as utilities, United Telecom Council (UTC) said FCC should adopt eligibility definition that would include entities such as pipelines and railroads that coordinate with public safety during emergencies. However, Assn. of Public-Safety Communications Officials (APCO) backed narrower definition that would prevent fire, police and emergency medical entities from having to compete with others for that spectrum. One point of agreement across broad range of comments was that 50 MHz allocation in further notice approved by FCC in Feb. was important for homeland security, but still fell far short of spectrum needed for public safety operations.
When granting additional flexibility for spectrum use, several wireless carriers and equipment makers urged FCC this week not to change rules in “midstream” for incumbent licensees that already had paid billions for licenses. Wireless and satellite companies, new technology developers, broadcasters and public interest groups filed close to 200 comments on questions from agency’s Spectrum Policy Task Force. Relatively high number of comments poured into Commission despite Office of Engineering & Technology’s refusal of several requests to provide extension of July 8 deadline. Public notice last month raised policy questions ranging from potential need to redefine harmful interference to whether rural spectrum should be covered under policy different from urban areas (CD June 7 p1). Some developers of emerging technologies stressed need for FCC to provide clarity in its Part 15 rules for unlicensed devices and to furnish more spectrum as demands increased. Several large carriers, including Sprint and Cingular, urged FCC to keep intact auctions of exclusive allocations and said market- based tools such as auctions worked only if license-holders had clearly defined rights.
Lt. Gen. Harry Raduege, Defense Information Systems Agency (DISA) dir., told Washington forum Mon. that military users were trying to move into higher spectrum where possible but were finding “more and more mobility that we are needing spectrum for” in much-coveted spectrum below 3 GHz. Raduege spoke at meeting of Center for Strategic & International Studies (CSIS) Commission on Spectrum Management, chaired by former Defense Secy. James Schlesinger and former Motorola Chmn. Robert Galvin. At time when NTIA is nearing completion of 3G viability assessment, which already has missed self- imposed deadline of June 30, defense speakers at meeting sent message of being willing to move when reimbursement and relocation were possible, but citing satellite spectrum as still particularly challenging for 3G.
In response to referral from U.S. Dist. Court, Kansas City, Mo., (CD June 13 p2), FCC ruled that Sprint PCS wasn’t prohibited from charging AT&T access fees for use of Sprint PCS network, but AT&T wasn’t required to pay them absent contractual obligation to do so. In order released Fri., FCC said that until court decided whether there was contract, it was premature to decide court’s 2nd question of reasonableness of rate charged. Agency said any changes to its rules would come up as it considered pending Intercarrier Compensation proceeding (CC Doc. 01-92). Issue arose in 1998 when Sprint PCS began sending invoices to AT&T asking that latter compensate it for costs of terminating long distance traffic bound for Sprint PCS’s wireless customers. Case is Sprint Spectrum v. AT&T. FCC said Sprint PCS charged AT&T 2.8 cents per min., rate included in NECA (National Exchange Carrier Assn.) tariff, and AT&T refused to pay. As of Sept. 1, amount in dispute exceeded $60 million. Sprint filed suit in state court in Mo. and AT&T requested that it be moved to federal Dist. Court. FCC ruled that: “Sprint PCS is correct that neither the Communications Act nor any Commission rule prohibits a CMRS carrier from attempting to collect access charges from an interexchange carrier… In a detariffed, deregulated environment such as this one, carriers are free to arrange whatever compensation arrangements they like for the exchange of traffic… That Sprint PCS may seek to collect access charges from AT&T does not, however, resolve the question whether Sprint PCS may unilaterally impose such charges on AT&T… We find that there is no Commission rule that enables Sprint PCS unilaterally to impose access charges on AT&T… We disagree with Sprint PCS that the forbearance policy adopted in the CMRS Second Report and Order enables Sprint PCS to impose unilaterally whatever rate it wishes, subject only to AT&T’s right to file a complaint.”
WorldCom’s financial scandal could have repercussions on entire communications industry and how it’s regulated, said Washington policymakers, analysts and others who follow sector. FCC Comr. Copps said scandal “should give us some pause at the Commission before we rely fully on [corporate] data” when reviewing applications for mergers and other financial changes. It might be better for FCC to do its own analysis, he said. One industry lobbyist warned that companies would have tougher time getting deregulatory action on Hill, for example broadband relief sought by Bell companies through measures such as Tauzin-Dingell, because Congress was expected to become much tougher on corporations in general. Randolph May, senior fellow at Progress & Freedom Foundation, said he had hoped WorldCom’s problems wouldn’t lead to backlash against deregulation because bankruptcy was “about accounting practices and human frailties, not regulatory policy.”