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FCC Assures Bell, Cable Access to Each Other’s Wires

Pay-TV and phone providers will get access to one another’s wiring in apartment buildings under an FCC order commissioners said will boost competition in both industries. An order stipulating when Bells must provide access to phone wires in multiple dwelling units (MDUs) to CLECs including cable operators, and when telcos can tap into cable wiring, was approved 5-0 at Thurs.’s agenda meeting. The order, in addressing 2 separate issues, offered cable operators a win, since Cox Communications’ complaint was upheld, while Bells get easier access to cable lines under Sheetrock in apartment walls.

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The Commission added Sheetrock to the list of barriers between wiring and video competitors, meaning telcos can get access to those lines at a point further from an apartment. Today’s FCC rules let cable rivals use wiring less than 1’ outside an apartment, unless blocked by metal pipe or cinder blocks, in which case the perimeter is extended (CD May 24 p15). The order means telcos can install lines for video in utility closets, apartment hallways and other areas easier to deal with than digging into a wall, Media Bureau Chief Monica Desai told us. The order may boost video competition, since building owners hesitated to let new video entrants create 1 sq. ft. holes in walls to access wires, Bureau attorney Holly Saurer told the FCC meeting.

The FCC also approved a declaratory ruling sought by Cox guaranteeing competitors access to incumbent LECs’ phone wires to provide service in MDUs. The FCC said competitors can have direct access to inside wire at the ILECs’ “terminal blocks” -- a point that had been contentious.

Cox sought the change after the Okla. Corporation Commission ruled against direct access by competitive LECs to ILECs’ terminal blocks in apartment buildings. The Okla. body had ruled that state law locates the network interface at the customer premises, not the terminal block outside apartments. The FCC stressed that while it overruled the Okla. Commission, it “recognizes that state commissions govern” interconnection practices and “nothing the order does upsets that role.” Cox challenged the Okla. ruling in the U.S. Dist. Court, Oklahoma City, which stayed its review pending FCC clarification.

Discussion took on the tone of a home and garden show as most commissioners joked about their remodeling experiences. “I do hope I do a better job on drywall here than I do at home, or we're going to mess everything up,” said Comr. Copps. Others joined Copps in the fun. “It’s not as easy as it sounds sometimes, getting the paint to match, so that’s why we want to make it easy for competitors,” said Comr Adelstein: “Everyone should have a choice… we want competition to reign.” Chmn. Martin said the order shows the FCC is serious about promoting video and phone competition and doesn’t favor one industry over another.

“New entrants to the video services and telephony markets should not be prevented from competing for consumers in multi-unit buildings based on costly and inefficient industry practices,” the FCC said in a release issued after the vote. Martin said: “We're taking an important step to address competition in both the video and phone markets.” Said Copps: “I see no reason why Americans who happen to live or work in multi-unit buildings should have a narrower range of choices when it comes to phone, video and broadband services than Americans who live in single-family homes.” He said the order isn’t about broad policy issues but “narrow implementation questions.” - Jonathan Make, Edie Herman

FCC Agenda Meeting Notes

The FCC voted Thurs. to require interconnected VoIP providers to offer telecom relay services and contribute to the TRS Fund. The order approved by the FCC extends Telecom Act accessibility requirements to VoIP service providers and manufacturers. Secs. 225 and 255 set requirements for access to telecom services by persons with disabilities. Gear makers would be expected to design accessible equipment; providers, to ensure service is available. Manufacturers and providers would be expected to offer documentation and information that people with disabilities can use and understand. Providers also would have to offer TRS access via the 711 abbreviated dialing code that other telecom providers use. “VoIP services are increasingly being marketed and used as a substitute for traditional landline phones,” said FCC Chmn. Martin. “While technologies will continue to evolve, core social goals in the Act regarding the provision of communications services to all remain unchanged.” Said Comr. Copps: “When consumers pick up a phone, they don’t worry about whether it is an interconnected VoIP service or a traditional phone service -- nor should there be any concern. Therefore, it makes sense for the Commission to extend the requirements of Sec. 255 to interconnected VoIP service providers and equipment manufacturers.” Comr. Adelstein said VoIP providers should have to pay into the TRS Fund: “If an interconnected VoIP service provider shares in the benefits of having the ability to access and use TRS or Video Relay Service, which draws more customers, they should also share in the burdens by contributing to the fund.” - EH

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The FCC’s unusual delay in seeking comment on the XM- Sirius merger may not mean much, Chmn. Martin said after Thurs.’s agenda meeting. XM and Sirius filed their merger application at the FCC March 20, but the FCC hasn’t sought comment, a step that takes a few weeks. “I don’t think they should read anything into it beyond what I've already said before,” Martin said: “It’s an unusual merger in that… there’s a high hurdle the parties would have to meet, because the Commission has a previous order that would prohibit… the 2 licenses from being owned by one party… The issues were raised from the beginning and we're working through them all.” -- HB

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A rulemaking on how the FCC lets TV stations make changes to their market designations was pulled late Wed. from the Commission’s meeting agenda. The notice of proposed rulemaking dealt with DBS and cable carriage of broadcasters. The FCC didn’t release details of the notice.