U.S., along with allies such as Canada and U.K., called on ITU policy forum in Geneva this week not to take prescriptive action on development of IP telephony networks to protect revenue from older, circuit-switched systems. At World Telecom Policy Forum on IP telephony Thurs., representatives of Arab states, some African countries and parts of Latin America and Asia continued to question costs and potentially lost revenue from shifting telephony traffic to IP networks. U.S. raised concerns about proposal circulated by Syria this week that would stipulate backward compatibility for new IP telephony networks and existing public switched telephone networks (PSTN), so neither would make other obsolete. At our deadline, drafting groups still were working on details of opinions that would be up for approval at closing session of forum today (Fri.). It was unclear whether or how Syrian proposal might change, U.S. officials said. “The meeting has conformed to what we expected, which is to say that there is a great deal of caution among many national delegations about the impact of this new kind of service… on their existing telephone systems,” said U.S. official in conference call from Geneva.
Research firm Jupiter Media Metric forecast that wireless Web users in U.S. would grow to 96 million in 2005 from 4.1 million in 2000. In report, Jupiter projected that of 96 million users then, 74.9 million would be using handsets centered on voice functions, 7.3 million data-centered handsets, 4.4 million Web-enabled personal digital assistants. Report predicted that national carriers would be consolidated into 3 companies within 5 years as regional operators are absorbed by larger rivals. Jupiter said 3rd-generation wireless services were “no near-term reality” in U.S., although they were scheduled to launch in Asia in next 2 years, with U.S. and European markets not seeing wireless broadband connections for 4 to 6 years. U.S. deployment of location-based wireless services will emerge in 2 years, report said, driven by FCC mandates on Enhanced 911 capabilities. Jupiter said European carriers would promote location-based mobile services in next year using less precise location data.
ORLANDO -- Panel of Washington insiders told CEOs of competitive telecom companies here Mon. that they must become more involved in lobbying against Bell-sponsored data LATA relief because there was better chance than ever that such legislation could pass. Speaking at CompTel’s annual convention, panelists came close to pleading with competitive entrepreneurs, who traditionally are less likely than Bell CEOs to get involved in policy issues. They warned that their businesses could be at stake; that House, at least, was likely to pass data deregulation legislation this session and that Bells were very good lobbyists. “You need to make clear why this legislation could be a danger to this industry,” said Gary Slaiman, Washington attorney and former aide to Senate Judiciary Committee. Earl Comstock, Washington lawyer and former legislative counsel to Sen. Stevens (R-Alaska), told group, “Bell CEOs are engaged, they come to Washington. Your industry CEOs don’t often come to Washington and you have a complicated message.”
Original C-block bidder Airadigm is awaiting answer to petition for reinstatement of its PCS licenses, which FCC cancelled after carrier missed payment after entering bankruptcy in July 1999. Petition still is pending before agency nearly one month from oral argument before U.S. Appeals Court, D.C., March 15 in litigation involving NextWave, bankrupt C-block bidder that also had its licenses cancelled for nonpayment. Airadigm has pointed out that only similarity between it and NextWave is that both are C-block bidders that entered Chapter 11 protection and missed installment payment for licenses. Because of disparities such as fact that Airadigm is offering service and NextWave isn’t, question is whether 2 carriers potentially could be treated differently by Commission. Proceeding raises complex web of legal issues for FCC, making outcome uncertain, industry observers said. At press time, item on Airadigm petition wasn’t yet circulating on 8th floor. Meanwhile, group of large carriers asked Commission to put off Airadigm decision longer, citing how circumstances had changed since NextWave litigation began.
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.