Northpoint called “unusual” the request by Satellite Bcstg. & Communications Assn. to members of Congress to stop writing letters of support on behalf of Northpoint to FCC. Northpoint took issue with SBCA’s “self-interested commercial arguments in patriotic terms.” Company said it was “disgraceful” that SBCA would use tragic event such as terrorist attacks as justification for subjecting Northpoint to auction, saying “equal opportunity and technological neutrality should be a cornerstone of all federal licensing.” Satellite industry wants to “burden a future competitor with delays, costs and risks it does not bear -- and no doubts fears the competition” Northpoint will bring to market, it said. Northpoint also cited Sec. 647 of Orbit Act, which prohibits Commission from auctioning orbital locations or spectrum used for international or global satellite communication services.
Asked what regulators could do better, industry players, analysts and others agreed on one thing at pulver.com conference Tues.: They need better understanding of how telecom industry works. Panelists, some of them offering lessons learned from failed CLEC ventures, said FCC and state regulators worked in terms of years while CLECs could change business plans in matter of months. They said regulatory uncertainty and regulatory barriers could slow rollout of services to consumers -- for example, one municipal govt. could stop entire regionwide network from beginning service.
Despite sagging economy, there are ways policymakers could stimulate competition in telecom, if they wanted to, speakers at Pulver.com conference said Mon. For example, they could lessen Bell companies’ alleged reliance on litigation to delay competition, they said. Ex-NTIA Dir. Larry Irving and Allegiance Telecom CEO Royce Holland recommended Congress give FCC power to institute “expedited complaint resolution.” Feuds between telecom providers would be settled through binding arbitration by FCC- appointed experts rather than through appeals to federal courts, Holland said.
20 CLECs asked FCC Wed. to act soon on 8-month-old request by federal judge for clarification of CLECs’ rights when long distance companies refuse to pay access charges they think are too high. Hearing case brought by CLECs, Judge Thomas Ellis, U.S. Dist. Court, Alexandria, Va., asked FCC in Jan. for interpretation on whether long distance carriers could refuse to accept or deliver traffic to CLECs deemed to have excessive access charges. Case involved suit for nonpayment of access charges filed last year by 14 CLECs against AT&T and Sprint. Court put case on hold pending FCC clarification but, in letter to Commission, CLECs urged action by Oct. 5 because trial was scheduled to begin Nov. 6. Letter urged FCC to find that “Communications Act prohibits carriers from engaging in self-help if they disagree with a tariffed rate.” CLECs such as Allegiance, Time Warner, Focal, Net2000 said long distance companies couldn’t refuse or block CLEC traffic without violating Communications Act. FCC reportedly has been working on order to answer judge’s questions but spokesman wouldn’t comment.
FCC turned down CTIA’s request for open-ended extension of Sept. 30 deadline for all telecom carriers to comply with packet- mode communications electronic surveillance under Communications Assistance for Law Enforcement Act (CALEA). While rejecting blanket request for more time, which Justice Dept. had opposed, Commission gave carriers until Nov. 19 either to upgrade packet networks to comply with wiretap requirements or to seek individual relief. Order, voted Sept. 18 and released Wed., also temporarily suspended Sept. 30 date for carriers to implement punch-list electronic surveillance capabilities for FBI. Agency said it planned to set date for all punch-list capabilities that would let carriers be “fully CALEA-compliant” by June 30. Action came as interest in broadening wiretap capabilities of federal govt. were receiving increased attention in wake of last week’s terrorist attacks (CD Sept 19 p3).
Last week’s terrorist attacks appear to have dimmed prospects, for now, of wireless industry’s obtaining quick decision on relocating military spectrum users for 3G wireless. While insiders continue to stress need for additional spectrum for advanced wireless services, several told us that if nothing else, logistics of defense agencies focusing on response to last week’s attacks meant that Pentagon policymakers attention was focused elsewhere. On other hand, several wireless industry officials said key role played by mobile communications in aftermath of attacks, including final calls from passengers on hijacked planes, underscored very publicly importance of adequate wireless coverage.
FCC unveiled details of its restructuring plan at Thurs. agenda meeting, most dramatic of which would be combination of Cable and Mass Media Bureaus into newly named Media Bureau. As expected, bureau would include separate Office of Broadcast License Policy, which would be headed by current Mass Media Bureau Chief Roy Stewart, FCC Chief of Staff Marsha MacBride said at media briefing. Also as expected (CD Aug 29 p1), bureau would handle “postlicensing” policy for direct broadcast satellites (DBS), which would be shifted from International Bureau. Common Carrier Bureau would be renamed Wireline Competition Bureau and would have greater emphasis on technical and economic analysis, said Mary Beth Richards, special counsel to FCC Chmn. Powell, in presentation after meeting’s regularly scheduled business. Under changes, which require approvals from labor union, 8th floor and congressional appropriators, Consumer Information Bureau would carry new name of Bureau of Consumer Information & Intergovernmental Affairs and have broader policy functions. Wireless Bureau and Enforcement Bureau would assume some new duties, but their structure would remain intact. “This is a substantial effort at reorganization but it’s not radical,” Powell said.
At time when some in GPS, aviation and wireless community are voicing concerns to NTIA and FCC about potential of ultra-wideband (UWB) technology to cause interference, dozens of UWB trials and demonstrations are under way at federal agencies. Several industry observers said that sets up tough policy dynamic for NTIA between vocal criticism by GPS and aviation community and quieter interest of govt. agencies already using technology, which works by sending pulses at very low power levels in very short time periods over wide swath of spectrum.
As expected, Commerce Secy. Donald Evans sent congressional leadership draft bill Thurs. to postpone for 2 years deadline for receipt of advanced wireless auction proceeds. He told top brass on Capitol Hill and Vice President Cheney that Office of Management & Budget’s preliminary scoring indicated that proposal would reduce surplus by $1 billion in fiscal 2002 and increase it by that amount in fiscal 2004. Proposed language would shift statutory deadlines for completing auctions of 2 bands under consideration for 3G services to Sept. 30, 2004, from Sept. 30, 2002. “Based on revised assumptions for the current spectrum auction schedule, the midsession review of the budget baseline already reflects the shift in auction receipts from 2002 to 2004,” Evans wrote. He said any law that would reduce receipts was subject to pay-as-you-go (PAYGO) requirements under Balanced Budget and Emergency Deficit Control Act (BEA). “The BEA requires that official PAYGO scoring continue to use the FY 2002 budget baseline and thus score the cost to FY [fiscal year] 2002,” Evans said. “The Administration will work with Congress to ensure that any unintended sequester of spending does not occur under current law or through enactment of any proposals that are part of the President’s program.” Proposal would shift deadlines for depositing proceeds in U.S. Treasury for auctioning 1710-1755 MHz and 2110-2150 MHz and would provide more time to arrive at 3G decisions, Evans said. “Chairman Powell of the Federal Communications Commission and I both believe that it is imperative that the final allocation decision be the best possible one and that additional time and continued hard work are needed to reach that decision,” Evans wrote. While govt. wants to identify spectrum for 3G services as quickly as possible, he said, current statutory deadline “does not provide sufficient time to conclude the identification process and conduct an auction before Sept. 30, 2002.” NTIA Dir. Nancy Victory told reporters Wed. that language would be sent to Hill this week (CD Sept 6 p1). Besides Cheney, Evans sent letters to Senate Majority Leader Daschle (D-S.D.), House Speaker Hastert (R-Ill.), House Majority Leader Armey (R- Tex.), Sen. Lott (R-Miss.). Senate Commerce Committee Chmn. Hollings (D-S.C.), House Commerce Committee Chmn. Tauzin (R-La.), House Minority Leader Gephardt (D-Mo.), Sen. McCain (R-Ariz.), Rep. Dingell (D-Mich.).
AT&T Wireless (AWS) asked FCC for extension of Sept. 30 packet-mode capability under Communications Assistance for Law Enforcement Act (CALEA) requirements. Because surveillance equipment won’t be ready from vendors in time, AWS requested one- year extension of compliance deadline for short message service (SMS) and 21-month extension for general packet radio service (GPRS), 2.5-generation wireless technology. For older cellular digital packet data network (CDPD), AWS sought confirmation from FCC that CALEA solution wasn’t required because CDPD was information service. In quiet filing earlier this month, AWS also asked Commission to “reject the FBI’s attempts to impose an unnecessary and duplicative SMS surveillance capability on the industry.” AT&T request came shortly after CTIA sent letter to FCC Chmn. Powell that said individual wireless carriers were preparing waiver requests for upcoming deadline on packet mode assistance capability under CALEA (CD Aug 17 p5). Wireless association said individual carriers had been eyeing waivers nearly year after CTIA filed petition to suspend deadline, on which FCC hasn’t yet acted.