LAS VEGAS -- FTC Comr. Orson Swindle urged wireless industry at CTIA Wireless 2001 show here to focus on self-regulation for protecting consumers’ location-based information, saying that could stave off congressional action. “If you're going to wait around and not deal with a critical issue, then government is probably going to turn around and do something and I don’t think that’s the best solution,” said Swindle, who lauded CTIA petition to FCC that proposed principles for protecting privacy of location-based information. He warned of “incredible harm if we do it the wrong way, especially if we rush into it screaming ‘Oh, my God, Henny Penny, the sky is falling’ before we even understand the business models we are dealing with.”
LAS VEGAS -- Wireless industry pitches for more spectrum were almost as prevalent at NTIA convention here as wireless calls themselves. Customer demand for wireless spectrum will exceed supply by 2004 or 2005, Verizon Wireless Vp-Legal Mark Tuller said, and industry will need twice as much spectrum by 2010. He said increasing spectrum efficiency and technology couldn’t meet demand, and key sources were likely to be military spectrum (1755- 1850 MHz) and 2 GHz bands used by MMDS and ITFS wireless communications and educational TV services.
LAS VEGAS -- Several Latin American regulators, speaking on prelude to CTIA Wireless 2001 show here, urged greater regional harmonization of wireless rules and frequency selections as policymakers wrestled with issues such as how to bolster universal service and roll out 3G. “We have not achieved total integration in Latin America to facilitate communications,” Argentina’s Communications Secy. Henoch Aguiar said, noting that in some cases it’s more expensive to connect between 2 countries in region than with callers elsewhere.
Advisory Council on Historic Preservation (ACHP) signed agreement at meeting in Little Rock Fri. designed to streamline communications tower colocation reviews. Agreement was crafted by FCC, ACHP and National Conference of State Historic Preservation Officers. Pact eases review procedures for colocating antennas on existing towers under Sec. 106 of National Historic Preservation Act (NHPA). State and tribal historic preservation officers had discussed procedural changes with communications industry following flood of new applications as result of recent growth in wireless communications towers. Wireless industry had sought changes as way to help relieve administrative backlogs that were delaying tower construction. Agreement is product of 7 months of industry and federal, state and tribal govt. negotiations. Under pact, most colocations on existing towers will be exempt from ACHP siting review procedures. Sec. 106 requires federal agencies to consider effects of their undertakings on historic properties. Agreement acknowledges that effect on historic properties of antenna colocations on towers is “likely to be minimal and not adverse.” FCC said Fri. that national agreement was designed to relieve “unnecessary administrative burdens” on agency licensees, tower companies, state historic preservation officers and Commission “while protecting the goals of the NHPA.” Agreement allows antenna to be mounted on tower built on or before March 16, 2001, unless it: (1) Will increase substantially in size, based on factors such as raising height by more than 10%. (2) Has been determined by FCC to have impact on one or more historic properties unless there’s “no adverse effect” finding. (3) Is under pending environmental review or FCC proceeding involving Sec. 106 compliance. Additional caveat includes cases where licensee or tower owner has received notification that FCC has received complaint about adverse effect. Colocation on towers constructed after March 16 also is covered with similar caveats. “This agreement provides for flexibility now for carriers and tower companies to move forward,” PCIA Senior Vp-Govt. Relations Robert Hoggarth said. “The fundamental advantage of this agreement is simply that it allows historical preservation officials to focus on the small percentage of towers that do have an impact.” FCC signed off on agreement last week after it had allowed additional time earlier this year for comments on draft from tribal representatives. “Tribal concerns need to be addressed in this process,” Hoggarth said. “The programmatic agreement is the beginning as opposed to the end,” he said, noting PCIA was meeting with representatives of southern and eastern tribes today (Mon.) to begin identifying model siting agreement. Still, FCC Comr. Tristani expressed concerns that agreement fell short of agency’s commitment to facilitate tribal consultation in agency regulatory processes. Commission received nearly 20 comments from tribal govts. on draft, she said. “The overwhelming majority told us our approach is not working,” Tristani said. “This response is prima facie evidence that our understanding of tribal consultation is misguided.”
Despite sharply divided Commission, FCC Mass Media Bureau approved 32 radio station license transfers in 26 markets, clearing 75% of backlog of long-standing license transfer applications. Approval sparked strong dissenting comments by Comrs. Ness and Tristani, and support by Chmn. Powell and Comr. Furchtgott-Roth. Ness said FCC should have begun systematic review of FCC licensing process at same time that decisions were announced, but Powell said implementation could be reviewed as part of pending rulemaking on radio market definitions. Stations generally were in medium and small markets. NAB Pres. Edward Fritts called announcement of action on radio licenses “welcome news.”
House Commerce Committee will introduce new bill “in next month or so” to replace last session’s HR-2420 that would give Bells more regulatory freedom for data transmission and expects easy passage in House but harder job in Senate, Ken Johnson, spokesman for Committee Chmn. Tauzin (R-La.), said Thurs. Johnson, who participated in panel discussion at Precursor Group conference in Washington, urged audience not to “mistake inaction with indecision” on part of Committee because it still was committed to basic HR-2420 concept. Bill probably will be same as last year’s version although it could change during legislative process, Johnson said. Tauzin looks at current version of bill as setting tone for discussion, he said.
Qwest CEO Joseph Nacchio told state regulators fastest way to develop local competition was to “give competitors the freedom to take risks and enjoy the reward.” In keynote speech Mon. at NARUC winter committee meetings in Washington, he called himself “unabashed capitalist” willing to put money at risk where there’s best possibility of return. Talk came just one day before NARUC decision on its policy toward 2 federal-level deregulation proposals.
Four large TV group owners are devising plan to assure FCC exactly when they will give up analog Ch. 60-69 in planned switch to digital transmissions, Pax TV CEO Lowell Paxson said. After speaking at Federal Communications Bar Assn. lunch Wed. in Washington, he parried all reporters’ questions about what plan would entail, saying: “I'll get this plan to you when we finish it” in 2-4 weeks. In answer to another question, he said “it'll all come out in the plan.” He identified other licensees involved as Univision, Shop at Home and Pappas Telecasting -- which, Paxson said, represented more than 40% of 136 stations currently assigned to analog Ch. 60-69 which are to be auctioned to nonbroadcast users. Saying FCC Chmn. Powell had referred to upcoming switch to DTV as “a train wreck,” Paxson said to Powell (who wasn’t in audience): “You're the engineer now. Get us back on track.” Paxson said FCC’s recent rulemaking on DTV issues (CD Jan 22 p1) indicated agency was asking for direction from Congress. He urged Commission to hold hearings on transition to digital rather than solicit more comments. He said Pax TV Network was in black after 27 months of operation -- primarily due to help of NBC, although he didn’t mention that network -- while he said WB and UPN continued to lose money after several years of operation. Meanwhile, Moody’s (citing help from NBC) issued “outlook stable” notice on Paxson’s $122 million credit facility and $230 million in 11.625% notes, both due next year.
FCC denied petition by Operator Communications (Oncor) for forbearance of rule requiring that contributions to federal universal service fund be based on carrier revenue from prior year. Oncor contended that basing contributions on prior-year revenue harmed carriers with declining revenue. It asked FCC to forbear from assessing revenues for years 1998-2000 and then reassess contribution based on actual revenue for those years. Commission said requested action would give unfair advantage to carriers with declining revenue. FCC Comr. Furchtgott-Roth issued statement agreeing with FCC’s denial but emphasizing that problem raised by Oncor was serious: “Because carriers contribute to the universal service fund based on the prior year’s revenues, those carriers whose revenues have declined find themselves paying a higher percentage of their current revenues… than do carriers with stable or increasing revenues.” He said end-user surcharges could be “promising solution.”
Rural telephony is ripe for investment as regulatory reform, consolidation and divestiture of rural exchanges by Bell companies change way telephone service is offered in small communities, panelists told representatives of investment companies attending conference in N.Y.C. sponsored by Legg Mason. “This a good time for you to come in,” NARUC Pres. Bob Rowe said: “There is tremendous growth. Rural America awaits your participation.” Panelists at all-day conference represented telcos, regulators, financial investors.