Federal Communications Commission (FCC)

Bush Administration weighed in for first time on wireless spectrum cap Wed., with NTIA Dir. Nancy Victory urging FCC Chmn. Powell to enact “full and immediate repeal.” In detailed letter, she told Powell that retention of limits wouldn’t preserve competition but would “more likely result in consumer harm.” Letter came as FCC was set to review continued need for wireless spectrum cap by year-end, with issue expected to be on agenda for Nov. 8 Commission meeting. Cap for commercial mobile radio service (CMRS) operators now is set at 45 MHz for most markets and 55 MHz in rural areas. Administration also urged Commission to do away with cellular cross-interest rules. “Given the current vigorous level of competition in the CMRS marketplace, the existence of other mechanisms to safeguard against anticompetitive activity and detrimental consolidation, and the potential consumer harms if the rules are left in place, prompt repeal is not only warranted but required,” Victory said.

Wireless carriers, equipment manufacturers and several incumbents that may have to be relocated to make way for 3G largely agreed with govt. effort to examine 1710-1770 MHz and 2110-2170 for advanced wireless services. But in comment period that closed this week at FCC, diverse group of stakeholders in 3G proceeding differed on details. Importance of global harmonization for 3G services and adequate replacement spectrum for incumbents that may be moved to make way for advanced wireless services were among themes running throughout feedback received by FCC. CTIA reiterated that as much as possible of bands allocated for mobile satellite service (MSS) should be reallocated for services “with more clearly demonstrated needs.” Comments marked latest round in positioning on 3G spectrum among MSS providers, MMDS licensees, wireless carriers and others at FCC. Latest 3G feedback also was first that FCC had received since govt. released new plan for advanced spectrum earlier this month that would take bulk of 1755-1850 MHz band occupied by Defense Dept. off table for now. Among concerns raised by incumbents was filing by New ICO that cautioned that reallocation of 2 GHz MSS spectrum for 3G would “represent an arbitrary, unprecedented departure from a reasonable allocation policy that has been under development for almost a decade.”

FCC Fri. upheld Common Carrier Bureau’s designation of Western Wireless as eligible telecom carrier (ETC) in Wyo. ETC status enables carrier to receive federal universal service support. Commission denied petitions for reconsideration filed by rural telcos Golden West Telephone Co-op, Project Telephone Co., Range Telephone Co-op, Chugwater Telephone Co., RT Communications. Comr. Martin “concurred” on part of order, saying he was concerned about FCC’s “policy of using universal [service] support as a means of creating competition in high-cost areas.” Martin said he was “hesitant to subsidize multiple competitors to serve areas in which costs are prohibitively expensive for even one carrier.” Bureau had concluded that Western Wireless would provide service throughout required geographic area and would promote competition and new technology. Petitioners said: (1) State regulators were better suited to deal with ETC request. (2) Rural telcos would suffer harm. (3) Final FCC order included exchanges not mentioned in original Western Wireless petition. (4) Western Wireless’s service area impermissibly crossed state boundaries.

Policy implications of emergency response to Sept. 11 terrorist attacks are focusing increased attention on wireless proceedings that would free up additional public safety spectrum. Assn. of Public-Safety Communications Officials-International (APCO) wrote to House Telecom Subcommittee Chmn. Upton (R-Mich.) this week, urging that DTV transition in 700 MHz band be accelerated to make way for public safety services allocated in Ch. 63, 64, 68 and 69. Written in advance of DTV hearing that had been set for today and postponed (see separate story, this issue), APCO said: “The nation’s public safety agencies cannot wait until some future, unknown date when 85% of television households have access to DTV signals.” Another focus of attention is 4.9 GHz band that’s being transferred from govt. to nongovt. uses, which public safety community has expressed interest in having set aside for its use. Also under scrutiny is 138-144 MHz band, which is being studied for potential public safety applications. Spectrum capacity constraints for both public safety and commercial wireless users have come up in context of priority access system that National Communications System (NCS) is exploring. While those proceedings already have been under way in some form at federal level, source said “there’s clearly sort of a recognition after the events of Sept. 11 that the importance of these has gone up a level.”

FCC has much bigger job -- to protect public’s interest, chiefly its safety -- than anyone could have imagined just 5 weeks ago, Comr. Copps said Mon. In speech to Federal Communications Bar Assn. (FCBA), he said Sept. 11 terrorist attacks caused many in federal govt. to rethink their agencies’ role. FCC now “must be in the vanguard of our homeland security efforts,” he said. Among first tasks, Copps said, is for Commission and industry to determine which parts of nation’s telecom networks performed well, which failed, repair damage, establish “redundancies” in networks that will allow citizens to communicate during crises, even when one system fails. He cited example of his own family. His son, student at Gonzaga High near Capitol, tried to get through to his parents by wireline and wireless without success. But, much to his worried parents’ relief, he was able to reach them over school’s Internet connection to tell them he was okay. “If Sept. 11 was about anything other than evil, it was about communications,” Copps said, citing “desperate outreach from each of us as citizens to find out what was going on, where our loved ones were, what other threats were coming our way.”

Public broadcasters will be allowed to accept ad money, as long as they limit those ads to programming on their excess DTV channel capacity that isn’t broadcast to general public, FCC ruled 3-1 Thurs. Commission said public broadcasters could solicit funding outside traditional sources -- donations from viewers, philanthropic organizations, corporate underwriters, govt. subsidies. It said ruling was intended to help public broadcasters make transition to DTV from analog, but it has no sunset provision, meaning alternative revenue streams still will be available after DTV transition is complete. Mass Media Bureau Chief Roy Stuart said money also could go into producing programming. Examples of kinds of services that may be offered as ancillary or supplementary in digital TV signal include subscription video, paging or voice messaging services, computer software distribution, data transmissions, interactive materials. FCC officials didn’t rule out subscription video offerings such as premium services much like HBO or Showtime delivered over cable systems. Commission did rule that noncommercial educational (NCE) TV licensees must pay fee to federal Treasury of 5% of gross revenue generated by those extra services, just like commercial broadcasters. Currently, public TV (PTV) doesn’t run commercials, but conversion to DTV would allow them to support several programming streams.

Northpoint called “unusual” the request by Satellite Bcstg. & Communications Assn. to members of Congress to stop writing letters of support on behalf of Northpoint to FCC. Northpoint took issue with SBCA’s “self-interested commercial arguments in patriotic terms.” Company said it was “disgraceful” that SBCA would use tragic event such as terrorist attacks as justification for subjecting Northpoint to auction, saying “equal opportunity and technological neutrality should be a cornerstone of all federal licensing.” Satellite industry wants to “burden a future competitor with delays, costs and risks it does not bear -- and no doubts fears the competition” Northpoint will bring to market, it said. Northpoint also cited Sec. 647 of Orbit Act, which prohibits Commission from auctioning orbital locations or spectrum used for international or global satellite communication services.

Asked what regulators could do better, industry players, analysts and others agreed on one thing at pulver.com conference Tues.: They need better understanding of how telecom industry works. Panelists, some of them offering lessons learned from failed CLEC ventures, said FCC and state regulators worked in terms of years while CLECs could change business plans in matter of months. They said regulatory uncertainty and regulatory barriers could slow rollout of services to consumers -- for example, one municipal govt. could stop entire regionwide network from beginning service.

Despite sagging economy, there are ways policymakers could stimulate competition in telecom, if they wanted to, speakers at Pulver.com conference said Mon. For example, they could lessen Bell companies’ alleged reliance on litigation to delay competition, they said. Ex-NTIA Dir. Larry Irving and Allegiance Telecom CEO Royce Holland recommended Congress give FCC power to institute “expedited complaint resolution.” Feuds between telecom providers would be settled through binding arbitration by FCC- appointed experts rather than through appeals to federal courts, Holland said.

20 CLECs asked FCC Wed. to act soon on 8-month-old request by federal judge for clarification of CLECs’ rights when long distance companies refuse to pay access charges they think are too high. Hearing case brought by CLECs, Judge Thomas Ellis, U.S. Dist. Court, Alexandria, Va., asked FCC in Jan. for interpretation on whether long distance carriers could refuse to accept or deliver traffic to CLECs deemed to have excessive access charges. Case involved suit for nonpayment of access charges filed last year by 14 CLECs against AT&T and Sprint. Court put case on hold pending FCC clarification but, in letter to Commission, CLECs urged action by Oct. 5 because trial was scheduled to begin Nov. 6. Letter urged FCC to find that “Communications Act prohibits carriers from engaging in self-help if they disagree with a tariffed rate.” CLECs such as Allegiance, Time Warner, Focal, Net2000 said long distance companies couldn’t refuse or block CLEC traffic without violating Communications Act. FCC reportedly has been working on order to answer judge’s questions but spokesman wouldn’t comment.