CHICAGO -- Despite nation’s economic slowdown and depressed media ad spending, cable operators painted bright picture of industry’s future Mon., boasting about success of their digital video and high-speed data services. Speaking at opening session of NCTA’s annual convention here, heads of 3 of 4 biggest MSOs said they would continue to roll out digital, data and even newer services such as video-on-demand (VoD) and home networking briskly over next couple of years because of unquenched consumer demand. They also said slowing economy had had little impact on their core video products so far. “It [the economy] really hasn’t held us back,” Charter Communications Pres. Jerry Kent said.
With FCC target deadline fast approaching for making 3rd generation (3G) wireless spectrum allocation decision, Dept. of Defense continues to take hard public line on risks of sharing or vacating military-occupied bands for commercial users. Rear Adm. Robert Nutwell said on TechNet International 2001 panel Tues. that although relocating incumbent military users might be feasible -- given enough time and money -- strategy still would carry risks for Pentagon. Timing and finding comparable spectrum remain 2 large impediments, he said, calling 3G “number one” spectrum issue for DoD right now. He said DoD estimates of up to $4.3 billion in relocation costs were bit low. “I guess given enough time and money you could do almost anything,” Nutwell said of relocation option, saying main impediment was where comparable spectrum could be found. On timing, he didn’t budge from earlier DoD estimates it would take until 2010 to move nonspace systems from spectrum now occupied mostly by military, with satellite systems taking until at least 2017. “These are probably a little bit optimistic in terms of the actual time because typically satellites last longer than they were predicted to, so it could be even a little bit worse than this,” he told Washington conference.
Reflecting her background as FCC staffer and corporate lobbyist, new FCC Comr. Abernathy said one of her top priorities is to speed Commission’s decisionmaking and make its processes more “transparent” so public can better track issues. In interview with Communications Daily Fri., Abernathy said Commission’s delay in ruling on News Corp.’s proposed purchase of Chris-Craft Industries TV stations was one example of why she believed that changes ought to be made. “That’s [the delay is] unfortunate,” she said, noting that Chris-Craft license transfers have lingered at agency for 8 months. “I'd like it to move faster,” she said, while declining to say how Commission should rule on issue of local station concentration.
In bid to give national scope to historically local controversies, environmental groups are mounting campaign at FCC to compel more detailed environmental reviews of wireless towers. Friends of the Earth (FOE) and Forest Conservation Council have filed petitions to deny on near-weekly basis at Commission since late March, holding up final approval on 31 sites. Groups also want FCC to not approve future wireless towers until it conducts environmental assessment of its own antenna licensing program. Sudden influx of petitions -- on towers proposed by American Tower, Crown Castle, SBC and others -- appears to be new tactic by groups, which haven’t engaged in such national effort before, sources said. One FCC official said that in last 4 years, only handful of such petitions had been filed, with most centering on historic preservation issues. But recent petitions run much broader gamut, criticizing lack of detail from tower constructors on impacts ranging from migratory bird traffic to potential human health effects from radiofrequency (RF) emissions.
It’s “too simplistic” to question whether FCC Chmn. Powell supports telecom competition just because he also advocates deregulation where appropriate, he said in interview with Communications Daily. “Of course we favor competition,” he said. “The policy of the entire country is to favor competition.” What has been misunderstood is more “subtle” question of when intervention is right and when it isn’t, he said. Powell said he didn’t believe in jumping too quickly into new regulations or keeping old ones that no longer are necessary. Telecom Act requires FCC to review regulations periodically and determine whether they still are appropriate, so this isn’t new concept, he said: “There are appropriate places for regulation, but they should be carefully scrutinized and one should be hesitant to interfere with those operations without clear and demonstrable reasons for doing so.”
FCC is seriously looking into idea of adopting period of regulatory forbearance or creating “safe harbor” for new, cable- related technologies. Departing Cable Bureau Chief Deborah Lathen told us her staff had done “some additional work” on proposal “at the chairman’s request” after she floated general concept at Commission’s Feb. meeting (CD Feb 23 p2). “We've been doing work on forbearance,” she said in interview between clearing out her 3rd floor office at agency hq Wed. “This is food for thought.”
New ICO wants “regulatory flexibility, not new spectrum” with plan CEO Craig McCaw has offered to FCC, Senior Vp-External Affairs Gerry Salemme told us Thurs. “This isn’t an attempt to change the rules. We want to take the rules as they are written to optimize our spectrum to bring service to rural and remote parts of the world.” McCaw wants Commission to approve plan that would allow him to develop terrestrial spectrum using radio spectrum allocated to MSS operators, including New ICO (CD April 4 p1). Motient and Cellsat have offered similar plans to FCC. There has been strong opposition to Motient plan from wireless industry, including AT&T, but Cellsat is concerned about latest McCaw proposal because it has been waiting 7 years for license and doesn’t want proceeding delayed.
U.S. Appeals Court, D.C., questioned Tues. how costs of Enhanced 911 upgrades that rural and other wireless carriers pass on to customers are any different from public safety costs faced by other industries such as automakers and airlines. U.S. Cellular Corp., Corr Wireless Communications and Rural Cellular Assn. challenged 1999 FCC decision to eliminate cost-recovery mechanism for carriers as precondition to their obligation to furnish E911 caller location services. Commission lifted that requirement as it related to commercial carriers based on concerns that difficulties with putting state cost recovery legislation into effect were dramatically slowing E911 rollouts. Challenge by rural carriers centered on concerns that compared to larger carriers with urban customer bases, they must spread such costs over smaller subscriber base covering larger areas. But Judges David Tatel and Merrick Garland pressed U.S. Cellular attorney Thomas Van Wazer on how public safety costs and mandates at issue in this case were different from similar requirements imposed on other industries that also must pass on costs to customers. “Don’t auto makers pass that along?” Tatel asked. “Couldn’t Ford say we're not going to install any seatbelts because they are very expensive?”
Cable operators, manufacturers and their allies took off their gloves in battle over federal govt.’s interactive TV (ITV) policy, pounding away at Disney, Viacom, Gemstar-TV Guide and consumer electronics manufacturers for pursuing ITV regulation of cable industry. In reply comments on FCC’s ITV inquiry, AT&T, Comcast, Motorola, NCTA and Scientific-Atlanta accused regulatory proponents of hypocrisy and said they sought to replace fair marketplace competition with unfair govt. rules. In particular, they attacked Disney and Viacom, major independent programmers whose many cable networks are members of NCTA. Cable interests accused programmers and broadcasters of trying to use Commission’s proceeding to gain leverage in private, commercial negotiations.
FCC Comr. Ness will leave FCC at end of May proud of her work on E-rate and Telecom Act implementation, disappointed that agency didn’t move on redefining broadcast markets to ease radio concentration and ready to “weigh her options” for next job, she told news media after FCC agenda meeting Thurs. Ness reportedly has been thinking about going into academia, but she wouldn’t give any hints in impromptu news conference other than saying any future job probably would involve communications. “I am squelching the rumor that I'm opening a world-class restaurant in the Portals,” Ness said. FCC’s Portals building is in area not known for good restaurants.