Customs Duty

Not surprisingly, most ex-FCC commissioners end up at law firms after their tenure ends, often doing communications law. However, former chairmen have tended recently to end up as executives of corporations in the telecom, media or Internet industries. But neither trend is universal. Some of them have faded into obscurity and others have moved into new businesses entirely. For example, former Comr. Rachelle Chong (1994-1997) now heads a retail jewelry business in San Francisco.

Cooperation between the govt. and private sector in sharing information is key to protecting critical infrastructure, speakers said in a panel discussion organized by the George Mason U. Wed. in Washington. Rep. Turner (D- Tex.), ranking member of the House Select Committee on Homeland Security, said he supported efforts to protect the private sector from the release of sensitive information, but said some “information should be able to flow to government so that there can be a cooperative effort to try to solve the problem… If there was no effort or need for improved security, we never would have been asking for this information.” Turner said cooperation between the govt. and the public sector depended on “if government appears to be reasonable in the eyes of private sector… We are in the beginning stage to know how to protect American people.” Asa Hutchinson, undersecy.-border & transportation security for the Dept. of Homeland Security (DHS), said “we have strong levels of cooperation. Sometimes, there are tensions there… And there is some resistance there, but I think we've got to a much greater comfort level in recent years.” He said DHS, which had made a “significant amount of progress” in protecting critical infrastructure since it was created, expected industry “to cooperate in the national interest.” He said there also should be “regulatory guidelines in providing some of the essential information to us.” Catherine Allen, CEO of BITS, the Technology Group for the Financial Services Roundtable trade group, who represented the private sector on the panel, said it’s “very important to share valuable data of what happens in different institutions… Industries should talk with each other.” She said her group met with representatives of the telecom industry to identify vulnerabilities and ways to recover but said “at the end it’s going to take more than us,” and govt. should be involved to help make improvements in telecom infrastructure. Allen said “we've had unparalleled cooperation, especially in the last couple of years… in providing information and working cooperatively with law enforcement… We have requested as an industry certain protection to be able to talk with each other within the industry to share this information and to also be able to track the pattern of the type of activities that are going on.” She said she was “supportive” of govt. protecting the information provided to the DHS but said she opposed proactive information sharing: “What is the balance between invasion of privacy and customer protection?” Hutchinson agreed “there is a line that could be crossed” but said he didn’t think that “anyone should be snoops” in reporting to the govt. “That’s not the design there. There are rules and common sense to be followed there, but clearly there are some instances” where it would be a duty for institutions “to give us information that would be helpful to prevent an attack.”

The FCC opened an inquiry Wed., asking for comments on whether providing broadband communications services over power lines could cause interference and how to best measure emissions. Commissioners said the technology could offer consumers a 3rd way to obtain broadband service, in addition to DSL and cable modems, although it still was in the experimental stage.

Technology companies opposed petition that asked FCC to require retailers of 2-way voice or data radio equipment, excluding mobile phones, to undertake detailed record-keeping on customers. Dale Reich, self-described retail vendor of used radio equipment, petitioned FCC in Nov. to require retailers of such equipment, including unlicensed devices, to keep records of buyers’ names, addresses, phone numbers, signatures. CompUSA, Intersil, Symbol Technologies, Vanu and XtremeSpectrum jointly opposed petition Fri., citing burdens such requirements would impose without regulatory purpose. Such mandates would threaten market for consumer wireless devices such as Wi-Fi, filing said. “Emerging technologies such as ultra-wideband would be cut off before they can establish a foothold,” companies said. Requested labeling and record-keeping would extend to devices such as cordless phones, wireless speakers, garage door openers, baby monitors and wireless toys, joint comments said. Request would have FCC require ownership tagging for certain radios, including Part 15 devices, used beyond operator’s home area, which would include information such as whether license was required and FCC call sign or file number. “It is simply not feasible for the checkout clerks at CompUSA or Toys ‘R’ Us to interrupt their duties to fill out purchaser-specific paperwork, open boxes and prepare and apply individualized labels,” filing said. Petitioners raised concern that under proposal retailers would have to keep large amount of material “private from unauthorized inspection, yet accessible to a ‘reasonable request’ from law enforcement officials; and a retailer can invite police inspection if it suspects the radios are used unlawfully.” That means retailers would have to make “close judgment calls” on which law enforcement requests were reasonable and “what observations about a customer create a sufficient suspicion to justify showing the records to police,” filing said. Companies said no govt. agency required such detailed level of records for any consumer product other than vehicles. Agere Systems opposed Reich’s petition, citing potential impact on devices that operate under Part 15 unlicensed rules. Agere said petition was without merit, would impose unnecessary burdens on FCC and retailers and would “represent an unwarranted invasion of privacy of the purchasers of such equipment for no legitimate regulatory purpose.” It said Reich had failed to establish problem that record-keeping proposals would address. IEEE group raised similar concerns, including invasion of privacy involving consumer purchases. IEEE 802.18 radio regulatory technical advisory group said proposals “fly in the face of federal preemption of local and state regulation of radio communications devices, which the Commission reserves to itself the right to regulate.” Local agencies don’t have authority over such matters because of federal preemption of state and local regulation of such radio communications devices, IEEE group said.

Disney said ABC Sports Pres. Howard Katz was resigning, effective March 14; ESPN Pres. George Bodenheimer will add ABC Sports duties… Discovery advanced Neal Kirsch to CFO, Discovery Networks U.S… First Amendment and telecom attorney Robert Corn-Revere and telecom lawyer Ronald London move to Davis Wright Tremaine from Hogan & Hartson… CompTel re-elected Richard Burk of nii Communications as chmn.; new board member is Barbara Peda of AT&T… Promotions at Accenture: William Green to COO-Client Services and Stephan James to COO-Capabilities; Diego Visconti to succeed Green as Group CEO, Communications & High Tech… Dante Abbene, ex- Newbridge Networks, appointed senior vp-customer relations, Lightship Telecom… New board members at Versatel Networks: John MacDonald, AT&T Canada; Paul Butcher, Mitel Networks; Eric Goodwin, klocwork… Rashmi Doshi, ex-Everest Broadband, named chief of Lab Div. in FCC’s Office of Engineering & Technology… Val Boreland promoted to vp-scheduling, planning & acquisitions, Lifetime… Anthony Lee advanced to dir.-programming, middle America, Cox.

FCC Comr. Jonathan Adelstein told state regulators he expects to see decisions from state regulators regarding necessity of unbundled network element platforms (UNE-P) that will “surprise the skeptics” who believe states always will side with UNE-P.

Commerce Department (DoC) said Thurs. that, pending statutory approval, it would fold NTIA, Technology Administration (TA) and e-commerce duties of International Trade Administration into new agency headed by TA Undersecy. Phil Bond. The move would keep current NTIA Dir. Nancy Victory as asst. secy. for communications & information, but she would report to Bond and not directly to Commerce Secy. Donald Evans, as she does now. Proposal sparked public plaudits from several trade groups, but privately several industry observers questioned whether plan would lower profile of telecom in Administration.

Telecom bills advancing around country address municipal broadband, deceptive spam, telemarketing, carphone safety, 911, telecom taxation, other topics.

Conclusion of bilateral free trade agreement (FTA) between U.S. and Chile Wed. brought cheers from entertainment industry. Agreement expands U.S. access to Chilean markets by, among other things: (1) Giving immediate duty-free access to U.S. computer, information technology and audiovisual sectors to the Chilean market. (2) Giving reasonable and nondiscriminatory access to Chilean telecom networks, including right of U.S. phone companies to interconnect with Chilean networks, to use telephone switches and other facilities and to lease elements of networks. (3) Requiring nondiscriminatory treatment of digital products and nonimposition of customs duties on those products. (4) Granting high level of intellectual property rights, including ensuring govt. involvement in resolving cybersquatting disputes, strong copyright protection with anticircumvention provisions, and limited liability for ISPs for online copyright infringement. (5) Providing tough penalties for piracy and counterfeiting. FTA represents “landmark achievement on market access for the filmed entertainment industry,” Motion Picture Assn. Chmn. Jack Valenti said. Movie industry also praised FTA’s state-of-art commitments on e-commerce and its “groundbreaking” copyright provisions. While agreement’s details aren’t yet public, RIAA Exec. Vp Neil Turkowitz said, “it would appear that U.S. negotiators have added an important new element in the global legal system for the protection of intellectual property.” Incoming Senate Finance Committee Chmn. Grassley (R-Iowa) called FTA “a good development for both countries.” While he’s reserving final judgment until he has reviewed text of FTA, he said, it “appears solid.” U.S.-Chile FTA could have important implications for future bilateral trade agreements and regionwide Free Trade Area of Americas now under negotiation, he said.

Under nearly continuous questioning by 2 U.S. Appeals Court, D.C., judges, FCC attorney spent more than 30 minutes Thurs. morning defending way Commission wrote revisions in its payphone rules last year. All of parties at oral argument -- Sprint, which challenged ruling, FCC and judges - - agreed Commission probably should have published notice of rulemaking (NPRM) in Federal Register. Question was whether lack of NPRM was enough to require vacating rules.