FCC STAFF TEES UP TELRIC PRICING REVIEW, POWERLINE BROADBAND

Wireline Bureau Chief Bill Maher said completion of pending proceedings such as triennial UNE review, performance standards, wireline broadband access and “dominance- nondominance” proceeding were first on agenda this year. Later in year, bureau plans to look at long-pending intercarrier compensation, TELRIC pricing, portability of universal service support and voice-over-IP. Maher didn’t go as far as predicting action on those issues, only that they represented next challenges facing Wireline Bureau. He later said there were no proceedings pending on TELRIC issue so agency would have to start from scratch if it decided to evaluate effectiveness of current pricing formula. Some Bell companies have called for changes in parts of formula such as how TELRIC model handled depreciation, cost of capital, “fill factors.” On voice-over-IP, AT&T has petition pending on whether it should have to pay access charges on phone-to- phone IP telephony service. Maher said any inquiry probably would go beyond that limited area. Asked whether agency might look at VoIP’s effect on numbering, he said that was important issue but didn’t confirm its inclusion.

FCC Office of Engineering & Technology Chief Edmond Thomas said agency’s lab would examine spurious emissions from power line communications this year to assess interference potential to other services, such as TV. Several commissioners expressed interest in idea of using powerline communications as another path into homes to provide high-speed broadband services. That technology delivers high-speed data transmissions and broadband communications across utility’s medium and low voltage distribution systems. Point of lab research would be to assess potential interference from spurious emissions in both outdoor environment of transmission lines and environment of in-home wiring, Thomas said. Power Line Communications Assn. (PLCA) told FCC last year that technology could be deployed under existing Part 15 rules, with limited changes to expand flexibility in network design, increase throughput and extend service reach in rural markets. Of ability of technology to operate under existing Part 15 regime, Thomas told us after meeting: “We're not quite sure that that’s right and we're looking at that.” FCC is likely to seek comment on issue after preliminary research is done, he said.

FCC could move forward in that area with rulemaking or inquiry, Thomas said. That decision hasn’t been made yet and would depend on results of Commission’s findings, he said. “If there’s a significant problem, then obviously we've got to move very rapidly,” he said. “If there isn’t, we may conclude that the Commission’s rules are good enough.” FCC Lab is likely to examine both prototypes and existing equipment with eye toward not having to examine each individual configuration of technology when it starts operating in particular area, he said. “What you have to do is become confident enough that you have prescribed test procedures that are indicative of general uses,” Thomas said.

“Our intent is to examine rule changes to facilitate deployment to make sure we protect the incumbents from spurious emissions,” Thomas told FCC of powerline communications. OET’s estimate at this point is that that would require some rule changes and creation of some specific test procedures. Rule changes also are likely to be needed to facilitate rollout of cognitive radios, which are wireless systems that make such changes as modulation scheme in software. Technology will facilitate implementation of some of FCC’s Spectrum Policy Task Force recommendations, he said.

“Something like a powerline carrier could simply blow the doors off the provision of broadband,” Powell said, noting that it, ultra-wideband, cognitive radios and other advanced spectrum uses now were among most cutting-edge communications technologies. “When you talk about universal service, there’s a power plug in virtually every building in this country. It would be an enormous advantage to get that technology moving.” Comr. Martin said powerline proceeding that potentially opened “additional broadband capability to all existing homes” was particularly exciting.

PLCA Pres. Alan Shark said Commission had expressed interest in potential for powerline communications to compete with DSL and cable. But he said electric utilities and equipment manufacturers that made up PLCA weren’t convinced new rules were needed to allow that technology to be deployed, but he understood that Commission felt need to do testing to make sure existing rules covered new technology. In about week, Shark said his group will make filing to FCC on that issue. He said technology had: (1) Ability to bring broadband into homes that were wired for electricity, which greatly expanded geographic reach of other broadband connections. (2) Internal uses for utilities to be able to monitor security of electric power grid more closely. (3) Ability of local public safety agencies to have back-up data communications if their primary system went down. Some systems already are operating in U.S. under experimental licenses, and manufacturers have been doing own testing on interference-related issues, he said. “We are not aware of any interference issues,” Shark told us. One manufacturer is conducting field test that involves medium voltage to home, meaning that every plug in home could be connected with boxes that linked to USB or Ethernet ports. Another version of technology would use power lines to carry broadband to utility pole near home, broadcasting broadband to customer premises via Wi-Fi system, he said.

On ultra-wideband (UWB), Thomas said FCC early this year would address several petitions for reconsideration of Feb. 2001 order and “some minor changes to the rules to clear up some loose ends.” FCC rulemaking that allows UWB to move forward is being copied by European Union and several Asian countries, he said. FCC staff report in Oct. said ambient noise levels in certain environments were well above emissions limits for UWB, including in GPS spectrum, where they were up to 3,000 times greater than interference threshold that was used as basis for UWB limits at some outdoor test sites. FCC said at time that actual UWB devices weren’t tested because they weren’t yet commercially available in sufficient quantities. “We intend to continue the measurement program as ultra-wideband devices become available in 2003,” Thomas told Commission.

As for broader wireless issues, in Q&A after meeting with reporters and bureau chiefs, Wireless Bureau Chief Thomas Sugrue said Commission didn’t appear to be willing to delay implementation of wireless local number portability (LNP) timelines. CTIA said last week it planned to petition FCC this week to seek delay in Nov. 24 deadline for implementing LNP in 100 largest Metropolitan Statistical Areas, citing disparities in how LNP worked for wireline vs. wireless networks. “We will certainly look at that issue,” Sugrue said, noting that he had seen press reports about CTIA’s plans. “I don’t think there’s any sentiment on the Commission to delay the implementation of local number portability,” he said.

Copps Raises Indecency Reporting Concerns

Comr. Copps told Enforcement Bureau Chief Solomon he was concerned that bureau was asking too much of people who wanted to complain about indecency on broadcasts. Solomon said bureau didn’t require full transcript but said: “We need to have something from the consumer that gives us enough information about what was said in order to pursue a complaint. So what we say is, ‘Generally, what we look for is either a significant excerpt or a tape or transcript,'” Solomon said. Copps had said earlier that he wanted to shift burden of proof from viewer and/or listener to FCC and that broadcasters should keep tapes of their content so Commission could better investigate complaints.

Copps said he believed it was time Commission “revisit” its definition of indecency, possibly to include what he called “excessive” violence. “I believe a compelling argument can be made that excessive violence is every bit as indecent or profane or obscene as anything else that is broadcast,” he said, adding that he hoped FCC could “tee up” item that would invoke public discussion on subject. FCC Chmn. Powell said he thought it was “very important” to have such debate but said definition was not that of Commission but that of Supreme Court, which must balance First Amendment concerns. “While I think there may be some room to be more effective in enforcement, I think that I might say that it’s more complicated than simply to transform the definition of indecency in a manner that we would see fit if it doesn’t comport with the First Amendment definitions created by the Supreme Court,” he said.

Powell also said he believed that in most notorious cases last year, including that of Opie and Anthony and Eminem, FCC did not require transcripts. Copps said he thought that, in addition to court interpretations, FCC should use its own guidelines to determine what’s indecent.

Comr. Martin asked for follow-up from Solomon with numbers showing: (1) How many indecency complaints had been filed. (2) How many had requisite information. (3) How many didn’t have necessary information. (4) How many were sent letters asking for more information. (5) How many complaints FCC followed up on and investigated. “That might give us a better sense of whether there is a concern with the process or not,” Martin said.

Later, Media Bureau Chief Kenneth Ferree in presentation on issues in coming year cited clarification of regulatory treatment of cable modem service, specifically defining meaning of term “interstate information service.” Bureau hopes to present rulemaking for IBOC digital audio broadcasting and address major proceedings on DTV must-carry, broadcast flag and “plug-and-play” compatibility. It plans to present order in spring on broadcast ownership policy, Ferree said.

Ferree told reporters later that while he had hoped to have cable ownership rulemaking to 8th floor by end of 2002, EchoStar-DirecTV and AT&T Broadband-Comcast deals had slowed that effort. Bureau hopes to have item before commissioners in next couple of weeks, he said. Asked about concern of some senators on cable rates raised day earlier in Commerce Committee hearing (CD Jan 15 p1), Ferree said there wasn’t necessarily correlation between higher cable rates and media consolidation. “The connection between the national reach of cable operators and cable rates has always been a tenuous one. It’s not clear that the fact that my cable operator may also own a system in Topeka has any effect on my cable rates,” Ferree said.

Enforcement Bureau’s Solomon told Commission that several months ago his bureau began a structured Sec. 271 compliance review program. “With more Bell operating companies receiving long distance authorization in more states, the focus is shifting to continued compliance with Sec. 271’s market-opening requirements,” he said. Teams of auditors, attorneys and other Bureau staff have been assigned to each BOC region to conduct regular compliance reviews within 6 and 12 months after approval, he said. “The compliance reviews will allow us to identify compliance problems quickly” and take enforcement action if needed, he said.

Powell said he often was “perplexed” that legislation that would give greater enforcement authority to FCC hadn’t received traction in recent years, particularly in Senate. In past, he repeatedly has proposed that congressionally mandated FCC ceiling on fines be raised. Powell said Wed. he remained hopeful on passage of legislation that would aid agency in that area. He also praised relatively low-profile enforcement staff at Commission field offices that track down reports of interference, particularly in light of homeland security issues. “Most people don’t know we have our own little army, which is a true sign of an agency’s power,” he said. Powell quipped that he had “a couple of guys” in case things got rough. Solomon said they were “unarmed.”

Maher told commissioners that Bell companies had long distance authority in 35 states now, representing 75% of Bell lines, up from year ago, when they had only 9 states, representing 28.5% of their lines. He said bureau’s work in helping telecom sector recover included rooting out corporate fraud, “particularly in the E-rate program.”