While countries such as Japan and Mexico are starting to remove obstacles to competition, serious problems persist, telecom companies and equipment makers told U.S. Trade Representative’s (USTR) office. USTR sought comments in Jan. as part of annual review on effectiveness of U.S. trade agreements involving telecom products and services, including World Trade Organization’s (WTO) basic telecom agreement. Commenters also pointed frequently to competition hurdles in European Union (EU) member states, urging U.S. in some cases to seek stricter implementation of existing EU directives. Concerns raised by telecom companies, which in part centered on interconnection rates, provide road map of lingering telecom market-opening issues that would face USTR under Bush nominee Robert Zoellick.
FCC must-carry rules are filled with “legal and factual errors,” EchoStar said in letter signed by Vp-Gen. Counsel David Moskowitz. EchoStar joined rival DirecTV and Satellite Bcstg. & Communications Assn. in challenging constitutionality of must- carry rules in federal lawsuit. Under FCC rules, DBS companies must carry all stations in each market they serve. Satellite companies say those rules eat up valuable capacity and constrain their business. Moskowitz said Commission made “flatly mistaken observation” that Fla. federal court found Satellite Home Viewer Act that mandated must-carry rules to be constitutional. The court “never made such a finding and indeed it could not have, as it concerned a complaint relating to distant, not local signals.” EchoStar also criticized FCC for relying on “unsubstantiated comments” from NAB “without any empirical or other support” and treating them as facts. Finally, EchoStar said, satellite carriers in general, and EchoStar in particular, had devoted substantial resources to ensuring that all local TV broadcast signals carried on satellite systems enjoy superior signal quality.
As expected, FCC has embarked on reexamination of whether there is continued need for spectrum cap and cellular cross- interest rule for commercial mobile radio service providers. Notice of proposed rulemaking (NPRM) issued late Wed. (CD Jan 23 p1), but approved by FCC last Fri., seeks comment on whether wireless market has changed significantly since last time agency examined issue in 1999, when it decided to keep spectrum limits intact to safeguard competition. Point is to examine whether competition has grown to extent that spectrum restrictions can be lifted or relaxed, NPRM said. Questions in notice included role FCC plays in examining market impact of wireless deals vs. purview of Dept. of Justice.
As FCC Chmn. Kennard departs today, he leaves legacy as extremely decent man who might have been more effective if he were more of a politician, industry officials told us. “He is a prince of a man, honorable, honest,” said one telecom lobbyist. “But I don’t believe he’s a politician at heart and it’s hard for that kind of person to survive the political cauldron in Washington.” No one we talked with disputed Kennard’s honorable nature. Even his ideological opposite, Comr. Furchtgott-Roth, said Thurs. that he viewed Kennard’s departure to make way for Republican as “somewhat bittersweet” because Kennard was “one of the finest, most decent individuals I've ever met.”
Now that FCC finally has approved AOL’s takeover of Time Warner (TW) with additional regulatory conditions, cable operators, consumer groups, phone companies, state and local regulators, ISPs, broadcasters, DBS providers, cable overbuilders and others already are girding for next big fights over extending those regulations to rest of cable industry. Likely new battle fronts include 2 separate FCC proceedings on cable open access issue and interactive TV (ITV) rules, each of which covers part of leading conditions imposed on AOL-TW by FTC and FCC. Another new battle front could be expected bill in new Congress that would create comprehensive regulatory scheme for all broadband services, whether delivered by cable, telephone, satellite or wireless technologies. “It’s going to be more diffuse,” said Precursor Group CEO Scott Cleland. “The progress will still be made but it will be more difficult to track.”
LAS VEGAS -- FCC Comr. Powell endorsed free market vs. govt. regulation, pleasing consumer electronics officials at the CES here Sat. But reaction was more muted when he also indicated reluctance for govt. to move aggressively to spur DTV transition. Powell, who is widely rumored to become next chmn. of FCC, was interviewed one-on-one by CEA Pres. Gary Shapiro, also rumored to be candidate for position in new Bush Administration, despite recently signing new 10-year contract with CEA.
FCC unanimously adopted notice of proposed rulemaking (NPRM) that eyes frequencies, including those now occupied by military users, for 3rd-generation and other advanced wireless services. Commission also denied petition by Satellite Industry Assn. (SIA) seeking additional spectrum for mobile satellite services (MSS), move that Multichannel Multipoint Distribution Service (MMDS) licensees opposed (CD Aug 30 p1). FCC adopted notice Dec. 29, meeting White House’s year-end deadline for approving item, although text hadn’t been released by our deadline.