Teeing up reciprocal compensation issue on Hill, House Commerce Committee Chmn. Tauzin (R-La.) has written to FCC Chmn. Powell and several CLECs asking for information on issue “so we can work together to fairly resolve this matter once and for all.” In letters sent Feb. 15 to Electric Lightwave, Focal, Intermediate Communications, ITC Deltacom, Pac-West Telecomm and WorldCom, Tauzin asked for detailed information on their reciprocal compensation payments, revenues and associated costs. For example, he asked for how much money they had received over 4 years in reciprocal compensation and how much they had paid out. He also asked percent of their total revenues generated by reciprocal compensation. He said he was particularly interested in arguments that eliminating reciprocal compensation would require CLECs to raise their connection rates for ISP customers, which might then pass costs onto end users. Tauzin asked Powell for additional information, saying, for example, he would like material “detailing how a CLEC’s costs of routing a dial-up Internet call typically compare with a CLEC’s costs of completing a 2-way voice local telephone call.” He asked whether there were differences in types of network facilities used for those 2 kinds of calls and requested that FCC brief his staff on agency’s “activities and views” on issue. In letter to Powell, he said it had been 4 years since ALTS asked for clarification on reciprocal compensation dispute and “we still have no resolution.” FCC has made some “nondecisions” in meantime but it still was unclear what calls were entitled to reciprocal compensation. Industry sources said they expected Tauzin to come out with wide-ranging bill soon that would add reciprocal compensation to data LATA provisions sought by Bell companies.
Not surprisingly, most Internet users believe they should be able to download content free, according to survey by CEA. Among findings: (1) 89% of Internet users already download multimedia content and information. (2) 92% oppose paying taxes to use Internet, 75% oppose online sales taxes, 61% oppose laws to prevent file-sharing software such as Napster. (3) Only 15% said they're buying less music or software because file-sharing allowed them to download similar products. Slightly more said they were buying more, and majority said it had no impact on their purchasing. CEA Pres. Gary Shapiro said survey showed “we are on a collision course between intellectual property owners who want consumers to pay by the bit for access and consumers who want free access, but will pay for better or more complete content.” Shapiro said public policy debates must “shift the paradigm” to allow new technologies to evolve. CEA is supporting file-sharing technologies that, like VCRs, could expand consumer electronics market.
FCC Cable Bureau Chief Deborah Lathen proposed Thurs. that Commission consider adopting period of regulatory forbearance for new cable and possibly other services. In most provocative part of FCC general meeting, Lathen suggested that agency weigh creating “some type of safe harbor” or “perhaps some type of moratorium” to allow nascent technologies and services to grow, “at least for a little while.” Citing theoretical example of young ISP that seeks to offer cable programming by streaming video over DSL lines, she urged Commission to “take a step back” and “think outside the box” before slapping regulatory classification on such new services. “Why not get rid of the box?” she asked, adding that she didn’t have more specific plan.
Correction: Attorney representing FCC in U.S. Appeals Court, D.C., oral argument on reciprocal compensation Tues. was Lisa Boehley (CD Feb 21 p 3).
Verizon Wireless plans to spend $100 million over 3 years to improve its call centers, including expanding customer service staff 6% to 14,700 from 13,800 by year-end. Similar increases are set for 2002 and 2003, company said. Verizon Wireless said it would open call centers in Rancho Cordova, Cal., Greenville, S.C., Pittsburgh and Salt Lake City and would expand centers in Alpharetta, Ga., Columbia, S.C., Dublin, O., Elgin, Ill., Orangeburg, N.Y., Rochester, N.Y., Southfield, Mich., Wallingford, Conn. Five call centers are closing and 700 employees there will be offered relocation deals, company said.
Wyo. Senate committees cleared for floor action House-passed bill (HB-52) that would make wireless mobile phone providers eligible to receive subsidies from state universal service fund if they provided flat-rate local calling services. Customer bills would have to be reduced by amount of subsidy carrier received. PSC would determine wireless carrier eligibility. Senate committees also sent to floor House-passed sales tax bill (HB-259) that would authorize state Revenue Dept. to enter into regional tax collection compacts that would establish central merchant registry and sales tax administrative system to allow painless collection of sales taxes by out-of-state merchants that sold to Wyo. customers via Interinnet or catalogs.
Integral Systems received firm-fixed price contract from General Services Administration (GSA) to relocate satellite command and control facilities at NOAA in Suitland, Md., as part of asbestos abatement program. Terms weren’t disclosed. Plans call for Integral to relocate 3 operational satellite systems -- Geostationary Operational Environmental Satellite, Polar Orbiting Environmental Satellite and Defense Meteorological Satellite Program. Contract provides that there be no interruption of service.
PCS wireless carrier UbiquiTel, Sprint PCS network partner, is buying Via Wireless for $119 million in stock and assuming $25 million debt. UbiquiTel said acquisition would make it 2nd largest Sprint PCS network partner with 11.1 million licensed pops. It plans to issue 16.4 million common shares in deal that will give investors in privately held Via 19.5% of UbiquiTel stock after transaction. UbiquiTel said Via’s markets were contiguous to its own in northern Cal., including Fresno and Stockton.
Farid Suleman promoted to CEO, Viacom Infinity Div… Changes at ABC: Edward Wollock advanced to senior vp-gen. mgr., Central Sales Div., and Michael Rubin to senior vp-managing dir., same div.; James Engleman adds Disney Kids Network sales responsibility to senior vp-ad sales, Buena Vista TV… Mark Palchick, ex-Vorys, Sater, Seymour & Pease, named partner in Washington office of Holland & Knight… Appointed to Zenastra board: Walter Burmeister, World Access and Richard Coleman; Donald Hathaway retires… Frank Laughton, ex-AT&T, named vp- sales, Excelsus Technologies… Susan Packard, Scripps Networks New Ventures, named to Scripps Howard Foundation board… Jack McLean, ex-Greater Washington Initiative, appointed dir.-sales and mktg., United Press International… Richard Coleman named board member, Vroom Technologies; Donald Hathaway’s term on board expired… Andre Bureau, Astral Media, named to AT&T Canada board… Cameron Rejali, Sprint, joins Hybrid Networks board, replacing Timothy Sutton, resigned… Joseph Johnson promoted to senior dir.-creative services, Odyssey Network.
WorldCom appealed FCC’s order giving SBC Sec. 271 approval to enter long distance markets in Kan. and Okla. (CD Jan. 23 p2). WorldCom spokeswoman said company filed Wed. with U.S. Appeals Court, D.C., on ground that SBC wasn’t providing competitors with “nondiscriminatory access” to its local network as required by Sec. 271 checklist. Specifically, SBC doesn’t offer cost-based pricing for network elements in violation of Telecom Act, she said. This is first time WorldCom has appealed any Sec. 271 order. AT&T and Sprint also filed notice of appeal. AT&T spokesman said company “believes strongly that the FCC didn’t apply its own rules correctly or explain its decision adequately” in approving SBC entry in Kan. and “particularly Okla.” AT&T said Kan.-Okla. case offered “far more productive examination” of issues than FCC’s earlier action approving entry in Tex. Therefore, AT&T said, it had withdrawn earlier appeal of FCC’s Tex. decision.