Sweden’s Telia plans to ask that country’s court system to suspend decision by National Post and Telecommunications (PTS) Agency to award 3G licenses. PTS last month awarded 4 Universal Mobile Telecommunications Service licenses, in process in which Telia failed to win 3G spectrum. Telia, which is country’s largest carrier, said it is asking county administrative court system in Sweden to freeze PTS decision until it has processed company’s appeal. Telia appeal contends that PTS: (1) Made incorrect technical applications in license award process. (2) Failed to comply with its regulations, including not evaluating “commercial viability” of applications. (3) Ignored Swedish law which requires that license allocations be made at lowest possible cost to national economy. Telia charged that PTS awarded licenses in process that reflected public procurement proceeding and not license allocation procedure. Other issues raised in Telia appeal include concerns about role of external consultant hired by Swedish govt. to help process applications. Telia contends that consultants added “important information” to examination of applications which PTS, in alleged violation of administrative law, didn’t inform Telia about. Telia also said it wasn’t informed about questions on its application that consultants asked and that PTS didn’t refer to company for consideration. “The law states that private individuals are to have access to efficient telecommunications at the lowest possible cost,” said Telia Pres.- CEO Marianne Nivert. “But the PTS has certainly taken no law into consideration.”
Tex. PUC urged state legislature to set statewide goal of providing affordable advanced services to all Texans by date certain, refrain from overregulation of advanced digital data services, create climate that promotes advanced service development. PUC, in annual report to legislature on broadband development in Tex., said while rural areas’ broadband interest was high, they were less likely to have services available. Agency said Internet use among older, poorer and minority populations was less than in overall population. To spur broadband development, PUC suggested legislature consider tax incentives, giving rural governments authority to provide broadband services if private efforts failed, using control over state rights-of-way to encourage development, using economic development funding for advanced services. Agency also suggested private initiatives including demand pooling, community networks and finding “anchor tenants” that would guarantee usage to attract investment.
Effectiveness of U.S.-Europe safe harbor agreement on Internet privacy is in question for telecom carriers because FCC hasn’t agreed to enforce U.S.-Europe privacy agreement, source in Commerce Dept. (DoC) told us. DoC is in talks with Commission in effort to bring it aboard safe harbor agreement, although some sources said European Union (EU) wouldn’t recognize FCC as legitimate enforcement agency. Telecom and common carriers can join safe harbor agreement, but only as it relates to functions outside realm of common carriers, sources said. Agreement reconciles strong European privacy rules with U.S.’s self- regulatory stance, guaranteeing that U.S. companies can do business in Europe.
FCC asked Fri. whether it should adopt access charge reform plan for rural carriers in its entirety, as proposed by Multi- Assn. Group (MAG), or whether certain parts should be adopted or incorporated into other proceedings. Plan was developed by coalition of groups representing rural telcos -- National Telephone Cooperative Assn., National Rural Telecom Assn., OPASTCO, USTA. Comments will be due 30 days from publication in Federal Register, with replies due 15 days later. Federal Register publication generally occurs within days after item is released by FCC.
ABC said it will begin broadcast of drama series “NYPD Blue” in high definition TV (HDTV) with show’s premiere 10 p.m. Jan. 9.
Minn. Gov. Jesse Ventura (Ind.) outlined his telecom reform agenda for 2nd half of his term. In State of State address Jan. 4, he called for: (1) Abolishing outdated telecom regulations that he said stood in way of developing telecom competition. (2) Bringing advanced digital telecom services to every household and business in state by promoting competition and investment in high- tech telecom. (3) Eliminating implicit subsidies in telecom service rates. Ventura didn’t go into details on how he would accomplish his goals, but said overhaul of state’s telecom laws was needed to ensure Minn. cities would have access to modern high-speed telecom infrastructure that’s prerequisite for attracting new business investment.
CWA and IBEW members ratified 2-year extension of existing collective bargaining agreement with Qwest. Contract, negotiated in 4th quarter last year, covers wage and pension increases, including 3.5% wage hike effective Aug. 19. Original CWA contract, covering most Qwest union employees, was signed in Sept. 1998 following 3-week strike. Agreement was to expire Aug. 16, with extension now keeping it in place until Aug. 16, 2003. Other provisions include: (1) 5% wage increase that takes effect Aug. 18, 2002. (2) 6% pension increase effective July 1, 2002. (3) 10% pension raise July 1, 2003. IBEW extension with Dex directory unit provides similar increases with different timelines depending on contract schedules, Qwest said. Contract extension between Qwest Dex management and CWA has been tentatively ratified and must be approved by union members, Qwest said. Company said it expected to be informed of Dex vote results next month. “The union membership voted 98% in favor of ratification,” said Peter Pusateri, business mgr. of IBEW Local 1269.
European Commission (EC) updated its Internet telephony policy with few changes, concluding this technology “in general continues to fall outside the definition of voice telephony.” EC supplement to 1998 communication cited cases in which Internet telephony could be treated as voice telephony. Conditions that must be met include cases when service is offered commercially, provided to public, provided to and from public switched network termination points and involved direct speech transport and switching in real time and at same level of reliability and quality as public switched telecom network. Unless those caveats are met, EC said European Union members “should normally continue to allow Internet access/service providers to offer voice on Internet under data transmission general authorizations, and no mandatory requirement for an individual license is justified.” But if Internet telephony offerings meet 4 conditions, they should be regulated as substitutes for voice telephony under principle of technology neutrality, EC said. It sought comment last summer on status of voice communications on Internet. Several carriers urged Commission to make distinction between voice over Internet, which can be provided over public Internet facilities, and voice over IP, which is offered over dedicated IP networks and can guarantee quality of service (CD Sept 19 p1). EC policy update stipulated that voice over Internet covered “all kinds of conveyance of voice” using IP for routing and transmission. But voice over Internet is subset of voice over IP and “covers only such voice services that are provided over the public Internet, defined as a network of networks,” document said. While technology has improved since EC’s 1998 voice over IP directive, policy update makes clear that “public Internet” still is vulnerable to congestion that could affect voice signal quality. When service operators market bundled data and voice offering, EC would view this combination “as comprising 2 commercial offers,” policy said. In cases such as video telephony, when voice element can’t be separated from other components, “provision of voice services cannot be considered as the subject of a commercial offer,” EC said. It said supplement provided “general guidelines” and didn’t bar national authorities from making “specific assessments when justified by specific circumstances.”
Qualcomm reached CDMA modem card license agreement with Korea’s Qualified Mobile Telecommunications (QMtel), terms not disclosed. Royalty-bearing deal allows QMtel to develop and manufacture CDMA and cdma2000 1xEV modem card products for use in wireless data devices, including personal digital assistants. QMtel said it also was developing CDMA products such as e-books.
While CLEC industry is far from strong overall, upbeat news from McLeod and XO Communications shows CLECs with good management and business plans are persevering, analysts said Fri. McLeod announced bond offering and better-than-expected financial expectations Thurs. while XO announced Fri. it is selling $450 million of 5.75% convertible subordinated notes in private placement. Lehman Bros. analyst Daniel Zito said successful market transactions “should alleviate some pressure on the better names which have been cast away with everything else in the sector downdraft.” It shows “funding is still available at reasonable terms for the better management teams,” he said.