WIRELESS INDUSTRY PLANS TO CHALLENGE LNP DEADLINE AGAIN

CTIA unveiled plans to mount new battle on LNP rules at FCC within days of Consumer Reports release on wireless subscriber survey results in which 1/3 of respondents said they were “seriously considering” switching carriers. Consumers Union and state PUCs had urged FCC last year to not delay original Nov. 24, 2002, deadline for LNP. Wireless carriers had argued that more time was needed on 2002 timetable because it jeopardized complying with Nov. 24, 2002, thousand-block number pooling deadline, which FCC left intact. CTIA’s planned challenge to LNP rules also came at same time as group and Verizon Wireless were asking U.S. Appeals Court, D.C., to examine how FCC applied forbearance standard when granting one-year extension on wireless LNP (CD Jan 3 p4). Arguments in that case are set for April 15.

Wheeler told reporters in media lunch Wed. that before FCC imposed LNP requirements on wireless carriers, it first must correct disparity in how rules applied to wireline and mobile sectors. In wireline arena, calling areas are divided every few miles into rate centers, each of which has switch, he said. FCC rules are designed so that wireline carrier has to provide number portability only within that rate center, he said. But wireless networks typically have one switch that covers area that would be served by multiple switches on wireline side, Wheeler said. Only time wireline carriers are mandated by FCC to port number so wireless carrier could use it for same subscriber is when wireless switch is colocated in wireline rate center, he said. CTIA data said 7 of 8 rate centers didn’t have wireless switch colocated, he said. That means that in 90% of time that consumer wants to keep wireline number when switching to wireless, rules don’t require it, he said.

Wireless number portability “is a fraud on consumers in which the FCC is complicit,” Wheeler said. “It was sold as being procompetitive. It is not in the way it is being developed, in the way it is being implemented.”

Suit at D.C. Circuit challenges how FCC applied forbearance standard when granting one-year extension and extent to which agency may have overreached its regulatory authority because Telecom Act mandates only wireline number portability and doesn’t require FCC to impose wireless LNP. CTIA and Verizon Wireless filed petition at court in Aug. saying it was first time that court had been asked to reexamine how forbearance standard was applied since it backed off its initial ruling in Fox TV Stations v. FCC in early 2002. D.C. Circuit had said it was better to leave unresolved interpretation of “necessary in the public interest” under Sec. 11 biennial review requirements of Communications Act that were used to evaluate whether media ownership caps should be kept (CD June 24 p1). Case revolves, in part, around FCC’s interpretation of “necessary” in LNP rules in light of Fox decision, Wheeler said. He said that when CTIA asked other telecom trade groups to weigh in with amicus briefs in lawsuit, none joined. “They are scared. They said, ‘Tom, we've got things pending before the FCC. Why would we want to make them mad like that?'” Wheeler said.

Consumers Union had urged FCC earlier this week not to “waffle” in giving additional extension to wireless carriers in meeting LNP mandate of Nov. 24. CU Internet-telecom counsel Chris Murray said Sen. Schumer (D-N.Y.) was expected to introduce bill shortly on wireless LNP.

Wheeler ticked off several areas on which CTIA would focus in 2003, including urging FCC to play greater role in reaching out to local and state authorities on siting issues. He stressed that he wasn’t calling for federal govt. to preempt local siting regulations, but he urged “positive outreach” by FCC to siting authorities to stress that wireless network was national in scope. “The reality here is that the federal government has been AWOL on this issue,” he said. Wheeler said 911 Act passed by Congress in 1999 had asked FCC to work with states to implement statewide 911 programs. “Again, they were AWOL, they haven’t done it,” he said. Among concerns he expressed with Enhanced 911, is that such calls represent “profit center” for ILECs because they can seek cost recovery by filing state tariffs. “The way the FCC wants 911 calls to work for wireless carriers is they want it to be a cost center,” he said.

Wheeler expressed concern about stepped-up state efforts last year to regulate wireless carriers, move he called “anticonsumer.” He said: “What we don’t need is the Balkanization of America’s wireless marketplace, to cut up economies of scale so it impacts prices.” Wireless carriers have complained that compliance with patchwork of state regulations governing issues such as service quality would be more costly for operators, which would face different requirements in different states.

CTIA Senior Vp-Govt. Relations Steve Berry said establishment of spectrum relocation trust fund was top of wireless industry’s legislative priority list. He said House Commerce Committee Chmn. Tauzin (R-La.) circulated draft of bill last year that would provide funding for govt. agencies that were forced to move to different spectrum bands. CTIA also will lobby Congress for acceleration of depreciation schedules, Berry said. President Bush’s recent economic stimulus proposal included some elements that would accelerate depreciation, but Berry said some could be “strengthened.” He also said CTIA would work closely with newly formed E911 caucus in Senate, which is headed by Communications Subcommittee Chmn. Burns (R-Mont.) and Sen. Clinton (D-N.Y.), to resolve difficulties in E911 deployment.