Federal Communications Commission (FCC)

SALT LAKE CITY -- Closing speakers at the NARUC summer meeting here said VoIP, broadband over power lines (BPL) and other promising new telecom technologies and applications will face major development hurdles until federal and state regulators sort out their oversight roles. All major telecom resolutions were unanimously approved by the NARUC board during the convention.

Allowing broadband network owners to discriminate in providing access to their networks “represents a dramatic change” that would severely limit the growth of the Internet and IP services, according to a white paper by the Consumer Federation of America (CFA). The CFA said it will file the 110-page paper in nearly a dozen FCC and court proceedings, which it said “will define the architecture of the telecommunications network in the 21st century.” CFA defended the open architecture and open access principles in the FCC’s Computer Inquiries the past 3 decades, saying “policy-makers in the U.S. seem to have lost their appreciation for the fundamental importance… of open architecture.” CFA Dir.-Research Mark Cooper said “the Commission is trying to reverse this remarkably successful policy” of open access. “The steadfast refusal of telephone companies and cable operators to negotiate commercial access to their broadband networks, on terms that treat unaffiliated Internet service providers reasonably, makes it clear that the public interest can be promoted only by requiring facility owners to operate open communications networks,” he said. But the CFA said the “fundamental policy decisions are still up in the air” in a series of pending FCC decisions, including inquiries into high-speed cable Internet access, DSL high-speed access and universal service requirements, unbundling proceedings, broadband over power line and wireless broadband. It said the issue also is still in the courts in cases like Brand X. In the paper, the CFA said open networks “support rapid and efficient technological innovation,” as well as such benefits as interconnectivity, new services and lower costs. The paper also said the FCC can’t forebear regulating VoIP including on issues such as E- 911.

The FCC dismissed a petition asking it to declare that the monthly Interconnection Cost Adjustment Mechanism (ICAM) surcharges proposed by US West in the 14 states where it provided telecom service violated Secs. 251 and 252 of the Communications Act. The petition -- filed by Electric Lightwave, McLeodUSA and Nextlink in 1997 -- also asked that under Sec. 253 of the Act, the Commission preempt any state commission action letting US West impose ICAM surcharges. But the FCC said in the order since Qwest -- US West’s successor company -- decided not to pursue recovery of interconnection costs through the ICAM and no state ever adopted the proposal, “we fail to see that any dispute regarding the legality of the ICAM continues to exist between petitioners and Qwest.” It said it dismissed the petition “without prejudice as moot unless any interested party notifies us… that there is still a genuine dispute that remains to be resolved.” Notice is due 30 days after publication of the order in the Federal Register, replies 45 days after publication.

The FCC proposal that broadcasters retain recordings of their programs for 60-90 days (CD July 8 p4) drew mixed initial responses from public broadcasters. The Assn. of Public TV Stations (APTS), representing more than 350 stations, said it would oppose the proposal, while some public radio stations welcomed it as a good administrative procedure that would bail them out in the event of listener complaints. Public radio attorney and former NPR legal counsel Ernest Sanchez said what’s largely gone unnoticed is a U.S. Appeals Court, D.C., decision in 1978 striking down FCC requirements that noncommercial broadcast stations keep audio recordings of their programs for 60 days.

The FCC adopted an all-or-nothing rule for interconnection agreements before its meeting Thurs. The Commission required that competitive carriers seeking to adopt terms of another carrier’s interconnection agreement “adopt the agreement in its entirety, taking all rates, terms and conditions from the adopted agreement.” Comr. Copps dissented and Comr. Adelstein dissented in part.

The FCC agreed 5-0 Thurs., after months of arguments, to adopt an 800 MHz rebanding plan, which will give Nextel much of what it wanted, including 10 MHz of spectrum in the valuable 1.9 GHz band. But Nextel may have to pay more than $3 billion, beyond the spectrum it agreed to contribute. The FCC is also requiring that Nextel sign a letter of credit for $2.5 billion to cover all public safety transition costs.

Vice-presidential hopeful and retiring Sen. Edwards (D- N.C.) has received many donations from prominent figures in the broadcasting and entertainment industry, as well as some in high-technology. But he has been all but ignored by telecom donors. Sen. Kerry (D-Mass.), the presumptive Democratic nominee for president, selected his chief primary rival, Edwards, to join his ticket Mon. Kerry also was strongly favored by mass media donors in his primary campaign.

Robert Nelson, Mich. PSC comr., appointed to serve on Federal-State Joint Board on Universal Service, replacing Nan Thompson, comr-Regulatory Commission of Alaska… Michael Balmoris, ex-FCC, joins SBC as exec. dir.-public affairs… Reed Harrison, ex-AT&T, becomes pres.-COO, Cogent Communications… Howard Schrott, Liberty Corp. CFO, elected to Time Warner Telecom board… Ted Harbert, ex-20th Century Fox TV, becomes CEO of E! Networks.

FCC Media Bureau Chief Kenneth Ferree told a group of communications lawyers that there are several issues in the media ownership decision by the 3rd U.S. Appeals Court, Philadelphia, (CD June 25 p1) that could warrant Supreme Court scrutiny. Ferree stressed that the Solicitor Gen.’s Office, in consultation with the FCC’s Gen. Counsel, would ultimately make the decision on whether to appeal to the Supreme Court. He also said he had not yet consulted with the commissioners on whether the agency wanted to seek certiorari or take another course. But Ferree told a meeting of the Federal Communications Bar Assn.’s Mass Media Practice Committee that he did feel it was ripe for review. He said it wasn’t a perfect case, “but not a bad one” for the high court, given a number of inconsistencies and potential problems he sees in the ruling.

Verizon Gen. Counsel William Barr, a former U.S. attorney general, warned in a letter to the FCC late Mon. that commissioners could open themselves to criminal prosecution if they sided with Nextel on its 800 MHz rebanding plan. The letter also argued that the FCC has no legal authority to expend federal dollars to support the relocation costs of public safety agencies or companies like Nextel.