FCC officially opened its 8th annual video competition inquiry, once again asking cable operators, DBS providers and cable overbuilders to document their growth, spell out their new services and detail their costs. In notice of inquiry (NoI) approved unanimously Wed. and expected to be released in next few days, Commission said it also planned to seek such new information as cable and DBS provision of streaming video, interactive (ITV), other convergence services. Agency also said it would explore how many households “rely on over-the-air reception of local television stations on one or more of their television sets.” Finally, FCC said that for first time it would treat new breed of broadband service providers as separate category distinct from traditional cable overbuilders.
Citing changing TV industry dynamics and emergence of new competitive forces, NBC Chmn.-CEO Robert Wright believes TV networks’ current dispute with their affiliates couldn’t have been avoided. “There just are a number of people [large group TV station owners] who don’t want to see those rules [35% station ownership cap] change,” Wright told us in interview: “They're very fearful of losing their position in their market, and that’s really fundamentally what this is all about.”
Members of House Telecom Subcommittee voiced concern Thurs. that wireless carriers and 911 call centers wouldn’t meet Oct. 1 deadline for deploying Phase 2 of Enhanced 911 location capabilities. Ranking Democrat Markey (Mass.) warned “industry should not seek -- nor should the Commission grant -- waivers to rules merely for business convenience.” He cited what he called “manana” syndrome among carriers on implementing E911. “But when it comes to 3G, they want spectrum today. They stipulate that it’s a national priority.” Markey said he backed industry’s quest for more 3G spectrum, but said he would “like to see the same alacrity and aggressiveness” on public safety offerings linked to E911. Hearing focused on thorny implementation issues that face wireless industry less than 4 months before Phase 2 deadline, including equipment availability and readiness of public safety answering points.
Mandating changes in Emergency Alert System (EAS) in midst of cable’s EAS rollout “may cause disruption, increase costs and result in less participation,” NCTA said in comments on EAS rulemaking (EB 01-66). NCTA said some changes proposed by Society of Bcst. Engineers (SBE) and National Weather Service might be good, but others were “redundant or bothersome.” If FCC decides to adopt changes, it said, they should apply only to new equipment, with retrofit on existing equipment optional. SBE, in its comments, defended its proposal to lengthen monthly test window, require maximum modulation of EAS codes, make mandatory retransmission of alerts by NOAA and state and local govts. Washington State Assn. of Bcstrs. said it supported efforts to improve EAS, but FCC shouldn’t support proposals that “may have the undesired effect of reducing EAS participation.”
Bush White House in recent months has focused on how to curb cybersecurity threats, issue that also had high priority in Clinton Administration but that has been shaped by keen interest of this White House in national security issues, sources said. Concerns are expected to be part of what is addressed this week in meeting of National Security Telecommunications Advisory Committee (NSTAC), which includes CEOs of 30 telecom, network service provider companies and other high-tech companies. Closed -door NSTAC meeting that started Tues. night marks first time group, which meets about every 9 months, has convened under Bush Administration. National Communications System (NCS) has seen that agency’s mission “is growing,” with much of change centering on underlying communications backbones, said Brent Greene, NCS deputy dir., at TechNet 2001 International show this week. “We do a lot of information sharing,” he said. “We are beginning to accelerate how much information we're putting out into the private sector, to help them be aware of cyber challenges that we see that could potentially impact the telecommunications backbone or that could potentially impact financial processes within the vendor and finance community.”
Rep. Ackerman (D-N.Y.) and Sen. Corzine (D-N.J.) introduced legislation Tues. that they said marked first national proposals to ban wireless phone use while driving. In last several years, numerous proposed bans have been drafted at state level but ultimately failed to win passage. Several local communities, including in N.J. and N.Y., have adopted bans on talking on phones while driving, and N.Y.C. is considering similar measure, Ackerman said. He said in Capitol Hill news conference that one difference between 2 bills they were introducing was that Corzine’s would allow states to decide whether to permit use of hands-free devices. Ackerman said his measure would provide for hands-free devices at outset and both bills would offer exemptions for wireless phone use in emergency situations. He said that differences would be worked out in conference. Under both proposals, incentive for implementation would be contingency that highway trust fund monies would be withheld from states that didn’t comply, Ackerman said. “This is groundbreaking legislation,” he said. “The states sometimes have a lot of trouble doing everything until there is some federal initiative that gives them some encouragement and incentive to do it.” CTIA said proposals failed to address education, data collection and “the strict enforcement of existing laws that prohibit unsafe driving due to driver inattention or distraction.” CTIA cited data from several states that cellphone use contributed to small percentage of highway crashes. Group has opposed proposed bans on wireless phone use while driving.
Assn. of Public-Safety Communications Officials-International (APCO) applauded FCC Wireless Bureau decision last week concerning how certain Enhanced 911 expenses are to be divided between wireless carriers and public safety answering points. Bureau clarified where line is to be drawn for allocating costs of E911 Phase 1 network and database components in letter to King County, Wash., E911 program (CD May 9 p6). Letter stipulated proper demarcation point was input to 911 selective routers that ILECs maintain. “The FCC’s decision will single-handedly cut untold red tape from the process of implementing wireless enhanced 9-1-1 throughout the nation,” said APCO Pres. Lyle Gallagher. APCO pointed out that bureau decision sides with recommendations made by APCO, National Emergency Number Assn., National Assn. of State 911 Administrators.
Speaking at European Institute roundtable in Washington Thurs., Robert Verrue, dir.-gen. Information Society for European Commission (EC), demurred from making predictions about proposed framework directive on transparent telecom mechanisms and market power definitions. Last month at meeting of Telecom Council, European Union member states balked at proposals, expressing displeasure over changes to how market power is defined and possibility that EC could require members to amend national regulatory measures, Verrue said in lunch speech. National regulators at council meeting also disagreed with extent to which proposal would place spectrum decisions within scope of proceeding on transparent regulations, he said. “The Commission does not agree with these changes,” Verrue said. Directive is now headed to European Parliament for 2nd reading, where decision will be made over whether to reinstate some or all of original concepts put forward by EC, he said. “At this stage, I am making no predictions about what the final outcome will be,” he said. “The package represents a balance between flexibility and harmonization. The Commission will be seeking to maintain this balance in the final legislative package.” During question and answer session, Verrue was asked about telecom issues he expects to emerge in upcoming dialogue between U.S. and EU. “The time would be right in comparing the U.S. experience in local loop unbundling with what we are trying to do,” Verrue said. In next several days, EC will be posting report on its Web site outlining experience in EU to date with local loop unbundling initiatives. In just past 6 months, progress has been seen, Verrue noted. “A lot is being undertaken but at the same time it’s not enough,” he said. Other telecom issues that may come up in dialogue with U.S. are license specifications, he said. Verrue declined to comment on recent FCC approval of pending VoiceStream-Deutsche Telekom merger, saying only: “I'm happy to be at the end of it.” Panel discussion earlier in day centered around international experiences with deploying 3rd generation wireless systems. Ruprecht Niepold, head of EC’s mobile and satellite communications unit, said one policy alternative for addressing challenges of building out 3G networks might be network sharing, which he said ranges conceptually from site sharing to deeper cooperation among wireless players. In Netherlands, five 3G license-holders are talking to each other about setting up possible model for infrastructure sharing, he said. In part, this model would entail independent company deploying 3G infrastructure network, which all operators would have access to, he said. Such system would be transition until fuller deployment of 3G services, he said. Under this type of model, “regulators will have to be vigilant on how and under what terms infrastructure could be shared,” said Michael Kennedy, corporate vp-dir. of Motorola’s global govt. relations office.
LAS VEGAS Role of govt. in broadcast content regulation remained divisive among FCC officials at NAB convention here Mon. FCC Comr. Ness said content regulation generally shouldn’t be govt. responsibility, but broadcasters “have a responsibility” to “draw a distinction between what sells well and what serves the public well.” However, Jay Friedman, aide to FCC Comr. Tristani, said idea that First Amendment foreclosed regulation of TV violence was wrong.
Taking another deregulatory step, FCC moved to ease its restrictions on dual-network ownership Thurs., amending rules to allow Big 4 TV networks to own, operate, maintain or control emerging networks UPN and WB. By 3-1 vote, Commission adopted report and order (R&O) eliminating section of dual-network rule that barred mergers between major network and emerging network. As result, Viacom, which already owned financially ailing UPN before buying CBS last May, will be able to keep both networks or sell UPN to any of other 3 major networks if it wants. By same token, AOL Time Warner now could sell WB to any of 4 major networks, although it hasn’t shown any desire to do so.