Reflecting on Telecom Act progress after 5 years, FCC Comr. Ness said Thurs. she hoped Commission would “hold firm in our view” that it’s only after Bell companies have met statutory requirements such as cost-based pricing that they are allowed to enter long distance. She spoke to reporters at press breakfast one day after AT&T Chmn. Michael Armstrong suggested in National Press Club speech that long distance carriers were having so much trouble breaking into local markets it might not be worth effort (CD Feb 8 p7). He raised concerns such as inability to lease unbundled network elements at reasonable prices. Chmn. Powell this week also told reporters he didn’t think “deregulation is like the dessert” served only as reward for creation of competition. Asked about Armstrong warning that AT&T might exit markets where it offers local service, Ness said his frustration appeared to stem from pricing regime set on state-by-state basis. “I do think we need to look at some pricing issues, particularly together with our colleagues in the states,” Ness said, noting issue had emerged in conjunction with Bell long distance applications in Mass. and Okla. “We need to have prices that are forward-looking, that are consistent with the requirements of the Act,” Ness said. “We ought to be looking together with the states on what the best practices are.” She said “sustainable” competition has to be based on both cost-based measurements and efficient applications. Asked whether she expected Powell-led FCC to take less activist turn, Ness disputed “notion that all issues here are decided on partisan grounds.” Telecom issues historically are framed along lines of arguments that are more sympathetic to incumbents “versus those more sympathetic to the arguments of the insurgents,” she said. In other policy areas, Ness said she anticipated Commission would move forward on reciprocal compensation and related intercarrier compensation issues shortly. “I am hoping that we will address both of those pieces in the next few weeks,” she said. On wireless spectrum cap, which FCC is re-examining, Ness said it was time to assess purpose of cap. She said she also hoped that service providers with wireless licenses would “do everything in their powers to use spectrum more efficiently.”
Cable industry now has signed up 10 million digital video, 4 million high-speed data and one million cable telephony customers, NCTA Pres. Robert Sachs said Tues. Praising Telecom Act for promoting broadband investment and competition, he told Washington Metro Cable Club luncheon audience that cable industry had spent more than $42 billion upgrading its plant in 5 years since Act was passed. He also predicted that cable would emerge as vigorous competitor to phone companies in local telephony market over next 5 years, thanks to development of IP telephony over cable lines. In related move, Sachs said NCTA was changing its name to National Cable and Telecom Assn.
In much-anticipated announcement, President Bush tapped FCC Comr. Powell as chairman Mon., just days after departure Fri. of FCC Chmn. William Kennard. Powell, who has been on FCC since Nov. 1997, had been widely viewed as front-runner for post, although official word didn’t come until White House spokesman Ari Fleischer announced appointment at news briefing Mon. Separately, executive memorandum issued by Bush Chief of Staff Andrew Card began circulating more widely at FCC Mon. Though it wasn’t clear how much authority Executive Branch has over decisions of independent agencies like FCC, memo is intended to suspend regulations that agencies have approved recently but which haven’t yet been published in Federal Register.
SAN JOSE, Cal. - Telecom leaders need to develop regulatory strategy and regulators should become more flexible and less prescriptive, panelists said at Wireless Communications Assn. annual technology symposium here Wed. Regulators can help improve Internet broadband access and promote innovation by imposing regulations that are “technology-neutral,” said Industry Canada Spectrum Engineering Deputy Dir. Gen. Veena Rawat. Canadian regulatory agencies, she said, were moving away from “prescriptive, detailed technical standards” in favor of minimum constraints and only “essential technical rules.”
FCC took steps at its meeting Thurs. to make it easier for public safety agencies to communicate with one another on emergency scenes, including setting rules for interoperability channels in 700 MHz public safety band. In unanimously approved report and order, agency adopted standard for interoperability channels as recommended by Public Safety National Coordination Committee (NCC) chaired by Kathleen Wallman. For general use channels in 24 MHz designated for public safety in 700 MHz band, FCC adopted notice of proposed rulemaking (NPRM) seeking comments on migration path to more efficient standard. But to encourage early use of 700 MHz, some of which still is occupied by analog broadcasters, order indicated Commission wouldn’t mandate use of that more efficient technology before 2006.
As FCC readies long-anticipated inquiry into unifying carrier compensation methods, telecom industry appears less than united on how -- or even whether -- it should be done. FCC official said at news briefing Mon. that if Commission approved Notice of Inquiry proposed by Common Carrier Bureau, it would open proceeding that probably would take “several years.” Some industry representatives have urged agency to begin proceeding, saying it doesn’t make sense economically to have so many disparate intercarrier compensation methods. But others question value of rationalizing those different plans such as access charges, reciprocal compensation and various forms of wireless interconnection charges.
Despite earlier public statements of support, Globalstar wants General Accounting Office (GAO) to overturn deal that awarded rival Iridium $72 million contract last month for satellite telephone service without open bidding (CD Dec 13 p7). Globalstar charged lack of open competition and bidding process violated Dept. of Defense (DoD) bidding procedures, which should invalidate deal. Globalstar filed complaint with GAO Dec. 15. U.S. Defense Information Systems Agency (DISA), which oversaw contract, disagreed with Globalstar and predicted deal would pass legal muster with federal auditors. Military officials have suggested all along that Iridium contract was signed in “best interests” of providing global communications to military and govt. Govt. also played significant part in convincing Motorola “it was in the best interests of national security” to keep Iridium satellites in orbit when company went bankrupt, official said. DISA, which responded to complaint by saying Globalstar lacked capacity to service contract, said it planned to respond to complaint by Jan. 16 deadline. Iridium spokesman said company had no comment. GAO scheduled hearing for March 26.