January 5, 2001 by Sasha Samberg-Champion|Miscellaneous
Commerce Secy.-nominee Donald Evans was cautious on Internet and telecom issues in his appearance before Senate Commerce Committee Thurs., assuring panel members that he would give attention to their pet issues but making no specific commitments. Evans has been busy wandering halls of Senate since his nomination, having visited virtually all Committee members before hearing. He appeared to have little to no opposition, and several lawmakers said they expected to see him confirmed quickly following President Bush’s inauguration. Among topics raised by Senators: (1) NTIA’s Technology Opportunity Program (TOP), lauded by several members for providing technology funds to underserved regions. “I know how important the issue is,” said Evans of digital divide: “I will give it my attention.” He said he would try to convince business leaders to increase private efforts. (2) Wireless spectrum, which several senators said was major topic in their private meetings with Evans. Sen. Rockefeller (D-W.Va.) said country needed “spectrum management strategy… We go from crisis to crisis.” Evans acknowledged that he had just learned about 3rd-generation wireless technology “in the last 48 hours or so,” but said it might help solve digital divide. He agreed that govt. needed long-term strategy for managing and auctioning spectrum. (3) Bureau of Export Administration’s Critical Infrastructure Assurance Office, which Rockefeller said was “underfunded, understaffed.” (4) Internet taxation quandary, which Evans said was “going to be on all of our minds as we approach” Oct. end of current e-commerce taxation moratorium. However, he said, Bush Administration was “sensitive to what it might mean to the tax base of… the cities and the counties and the states. And so those factors need to be considered.” Evans said “important thing is to get all the right constituents to the table to talk” and “this is not something that we should wait until October or September or whenever to talk about it.” (5) Privacy. Asked by Sen. Wyden (D-Ore.) what his “general approach” would be on topic, Evans said only that he would work with ranking Democrat Hollings (S.C.) and Chmn. McCain (R-Ariz.) and others interested in issue. But he said “we shouldn’t continue to procrastinate.”
House Republicans surprised few with their choices for new committee heads late Thurs. Choices still had to be ratified by rank-and-file at our deadline. As expected, Telecom Subcommittee Chmn. Tauzin (R-La.) was promoted to Commerce Committee chmn., and Subcommittee Vice Chmn. Oxley (R-O.) was given expanded Banking Committee, apparently clearing way for Rep. Stearns (R-Fla.) to take over Subcommittee. Rep. Sensenbrenner (R-Wis.) won Judiciary Committee, as expected, while Rep. Thomas (R-Cal.) gained Ways & Means.
FCC unanimously adopted notice of proposed rulemaking (NPRM) that eyes frequencies, including those now occupied by military users, for 3rd-generation and other advanced wireless services. Commission also denied petition by Satellite Industry Assn. (SIA) seeking additional spectrum for mobile satellite services (MSS), move that Multichannel Multipoint Distribution Service (MMDS) licensees opposed (CD Aug 30 p1). FCC adopted notice Dec. 29, meeting White House’s year-end deadline for approving item, although text hadn’t been released by our deadline.
TMI Communications and EMS Technologies unveiled packet data terminal for U.S. transportation industry Jan. 3 after FCC approved modification in TMI’s license that allowed them to operate EMS PDT-100 packet data terminal in U.S. exclusively on TMI mobile satellite network. Firm said technology gives truck fleets tracking and messaging capabilities, doesn’t interfere with emergency communications services, reduces costs.
Network Access Solutions (NAS) said SBC converted NAS preferred stock into common and agreed to resell NAS’s broadband services in Verizon territory. Preferred shares, which were issued as part of $75 million SBC investment in NAS in March, were converted into 2.6 million common shares at $31 per share. “This will help SBC flesh out our DSL network” in northeast U.S., SBC executive said. NAS also will assign to SBC the central office sites in BellSouth and Qwest territories that were built under agreement between 2 companies and Telefonos de Mexico. NAS will take $24 million reduction in “paid-in capital” in 4th quarter to reflect transaction.
NCTA submitted 2nd brief to U.S. Supreme Court, seeking to convince high court to review appellate court ruling that struck down FCC’s authority over pole attachment rates for cable lines carrying Internet service. In 10-page reply brief filed Jan. 2 in Gulf Power case, NCTA argued that decision by 11th U.S. Appeals Court, Atlanta, “improperly rejected the FCC’s reasonable construction of Section 224” of Telecom Act and wrongfully concluded that “Congress intended to repeal the regulatory authority that the FCC admittedly possessed over pole attachments regardless of the type of service provided over the equipment attached to the poles.” NCTA also contended that “this case squarely presents an issue of national importance that was improperly decided” by lower court. It said utilities’ claims that “they are constitutionally entitled to recover so-called monopoly ‘market rates’ for providing access to essential bottleneck facilities is contrary to settled law and, if accepted, would render all rate regulation of monopoly enterprises unconstitutional.” Cable operators charged that utilities had been increasing pole attachment rates substantially since 11th Circuit ruling last spring. But utilities contended that they were entitled to get what market would bear.
Boeing Space Systems (BSS) received $160 million contract potentially worth $1.3 billion to develop high-capacity communication system for U.S. Air Force and Army by 2005, company said Thurs. Harris Corp., Logicon and ITT Industries are working with Boeing on project. Fixed-price agreement calls for first satellite to be launched in 2004 at cost of $160.3 million. If Pentagon exercises its options for 5 more satellites, business could be worth $1.3 billion. Boeing is using its new 702 model satellite bus and associated spacecraft and payload equipment. Team of technicians is expected to provide associated control equipment for both payload and spacecraft.
GiantLoop Network and 360networks announced alliance in which latter will be GiantLoop’s preferred provider of N. American and transatlantic broadband services. In addition, 360 networks made “very minor” equity investment in GiantLoop, Waltham, Mass.-based fiber network.
Qualcomm signed royalty-bearing CDMA infrastructure equipment license agreement with GBase Communications, terms not disclosed. Agreement licenses certain Qualcomm patents and agreements to GBase to develop and manufacture wireless infrastructure equipment for in-building or campus network applications. Pact covers cdmaOne, cdma2000, cdma2000 1xEV.
Globecomm said it signed $4.2 million contract with unnamed telecom company in southern Europe for development, integration and delivery of Ku-band satellite network.