FCC adopted notice of proposed rulemaking (NPRM) Thurs. that sought feedback on possibility of using mobile satellite service (MSS) spectrum for terrestrial wireless operations, either by MSS licensees or others. New ICO had petitioned FCC earlier this year to allow it to develop terrestrial spectrum using bands allocated to MSS (CD April 4 p1). In response, CTIA warned agency of precarious financial situation of several MSS developers and asked that spectrum be reallocated to more “efficient uses” such as 3G. Both sides lauded FCC action, with CTIA citing potential reallocation of up to 14 MHz of MSS spectrum for other uses and New ICO calling NPRM “important step” toward allowing MSS operators to reuse these frequencies for terrestrial operations on ancillary basis. At agenda meeting, FCC also unanimously adopted further notice of proposed rulemaking to examine additional frequency bands for advanced wireless services, including MSS. Proposals laid groundwork for putting additional commercial bands into play as part of 3G debate that has focused mainly on 2.5 GHz band occupied by MMDS and Instructional TV Fixed Service operators, 1755-1850 MHz spectrum used by Dept. of Defense and 1710-1755 MHz that has been reallocated from govt. to nongovt. users.

Sprint PCS told FCC Mon. it won’t be able to comply fully with Phase 2 Enhanced 911 rules or finalize “a simultaneous, national roll out of enhanced 911 location systems” by Oct. 1 deadline. Citing factors such as vendor delays, Sprint asked Commission for limited, temporary waiver of certain Phase 2 requirements. Carrier also outlined for agency areas where it’s on track to meet mandates, including plans to introduce more than 5 million GPS-equipped handsets by year-end 2002, and conversion of all new handset-models to GPS by Dec. 31, 2002. Phase 2 requirements for which Sprint PCS is seeking relief are: (1) Deployment of network infrastructure. Sprint pointed to Nortel delays in providing needed switching software to support Phase 2 location capabilities. One Lucent market should be ready for Phase 2 by Oct. 1, but “complete conversion of all Lucent markets” isn’t expected until 2002. (2) Sprint PCS may not be able to meet interim requirements that 25% of all new handsets be Phase 2- capable by Dec. 31, with 50% by June 30, 2002. Carrier said it could meet requirement of starting to sell GPS handsets by Oct. 1 and end-date requirement of full compliance by year-end 2002. Interim handset requirements may not be met because of conversion of Sprint PCS network to 3G. (3) “Due to the sheer volume of PSAP (public safety answering point) requests and the complexity of their installation, Sprint PCS will be unable to implement enhanced 911 systems within 6 months of every request received.” Carrier outlined preliminary deployment schedule that would phase in service roll-out. Sprint also raised concerns about lack of progress among LECs in upgrading automatic location information (ALI) databases to support Phase 2. Wireless industry and public safety community came up with interim standard that calls for upgrades to ALI database used by PSAPs and LECs. Based on responses Sprint PCS has received so far, “LECs are not making plans to upgrade their ALI databases to support these functions,” carrier said. Sprint said: “Because this issue promises to substantially undermine the efforts of PSAPs and wireless carriers to deploy Phase 2 services,” carrier said it’s urging FCC to launch inquiry into LEC preparedness in this area. LEC readiness is starting to be raised at FCC by other carriers, as well, said Luisa Lancetti, vp-PCS regulatory affairs. Extent to which Sprint is far along on Phase 2 deployment has made issue apparent to it now, she said. “We have made significant steps to make real this location capability,” she said. Later this summer, Sprint plans to conduct first market application in R.I., launching first GPS- enhanced 911 system, she noted. In its filing, Sprint PCS also said that by Oct. 1 it will have introduced at least one GPS handset model “in commercial quantities” and will have installed new national platforms to conduct location calculation and routing for these handsets. Sprint PCS also said that by Oct. 1 it will have tested new switching software for at least one vendor.

Wireless Technology Research (WTR) reached partial settlement of class action suit agreement with wireless carriers on their effort to create database of personal information on wireless subscribers and to monitor them for brain tumors. WTR, research firm that scientist George Carlo had headed that conducted cellphone health research for CTIA, had organized class action litigation that alleged that carriers had invaded privacy of cellphone users. Monitoring had been done to “for the purpose of avoiding scrutiny of safety and health problems raised with regard to cellular portable telephones.” Wireless entities that had been named in litigation included Ameritech, CTIA, Motorola. WTR said Cook County, Ill., Circuit Judge Stephen Schiller gave preliminary approval of settlement earlier this week. Hearing on final approval is set for Nov. 13.

NARUC’s Network Issues Study Committee presented group with preliminary look at what it said were 7 challenges to state regulation in near future. Study group representatives said key challenges facing states included: (1) Physical bypass of public switched network by satellite, cable, wireless and electric grid telephony. (2) Possible technology-driven changes in existing system of dual jurisdiction that could affect states’ ability to protect consumers. (3) Telecom market concentration through mergers, acquisitions and other types of consolidation that could diminish ability of states to carry out their duties to protect competitors and public. (4) Impact of Bell company Sec. 271 long distance entry on local and long distance competition. (5) Impact of Internet telephony on incumbents’ network cost recovery and on network reliability. (6) Changes in intercarrier compensation methods in order to promote efficiency, competition, infrastructure development. (7) Impact of packet switched services on providing and regulating telecom services traditionally supplied over circuit-switched networks. Report outlined trends, goals and tools regulators could use in addressing each challenge.

Three of 7 Qwest states participating in collaborative effort to assess Qwest’s compliance with 6 Telecom Act competitive checklist items not directly related to its operation support systems (OSS) reached preliminary assessments of how well Qwest is doing. Iowa Utilities Board (IUB) found Qwest meets all 6 points under review, including No. 3 (access to poles and other infrastructure), No. 7 (access to 911, directory assistance and other operator services), No. 8 (access to white pages directory listings), No. 9 (number administration), No. 10 (access to network signaling and databases) and No. 12 (local dialing parity). IUB conditioned its findings on verification of Qwest’s performance through Qwest Regional Oversight Committee’s OSS performance measures audit results, and Qwest carrying out commitments it made to satisfy concerns raised by individual CLECs. Wyo. PSC found Qwest is in compliance with checklist items 3 and 12. PSC declined at this time to rule on Qwest’s compliance with items 7-10. Agency PSC said Qwest has made efforts to address general CLEC concerns in these areas, but there were certain concerns specific to particular Wyo. CLECs that still needed resolution. PSC said it also wanted to see regional performance measurement audit results before reaching conclusions on remaining items. Mont. PSC found Qwest has fully complied with item 12, local dialing parity, but didn’t reach conclusions about remaining 5 items under review. PSC said it will be addressing other items this summer through comment-and-reply cycles and briefs, without need for industry workshop sessions. Like Iowa and Wyo., Mont. PSC also wants to see performance audit results. Other Qwest states in collaboration on the 6 checklist items are Ida., Utah, N.D. and N.M.

BOSTON -- Despite overall economic downturn in telecom sector, international cross-section of fixed wireless industry at preliminary session of Wireless Communications Assn. (WCA) conference here said networks in Latin America and Europe were moving forward, with some changes. Regulators in some cases aren’t immediately seizing licenses if terms aren’t met and govts. are turning more frequently to so-called beauty contests rather than auctions, participants said Sun. Biggest change may be that both regulators and financial backers are expecting realistic business plans with controlled buildout, they said. Among challenges in Europe are that unbundled local loop regulations in some cases can make it easier for competitors to lease network elements from incumbents for DSL, making wireless network buildout less compelling, said Arturas Medeisis, radiocommunications expert with European Radiocommunications Office. “So far, we haven’t seen true success stories yet,” he said of Western European markets.

EchoStar asked U.S. Dist. Court, Denver, to delay DirecTV lawsuit for 60 days so companies could continue to negotiate sale, as expected (CD June 1 p4). Analysts said move would open door for EchoStar to bid along with News Corp. for DirecTV. “Recently representatives of GM and EchoStar have conducted preliminary discussions as to whether a transaction leading to a business combination of EchoStar and DirecTV would be mutually desirable,” court filing said. Meanwhile, SG Cowan report said Dept. of Justice antitrust review of Gemstar’s interactive program guide could have negative impact on News Corp. bid. Market value of Gemstar is $16 billion, with 25%-35% or $4-$5.5 billion going to Sky Global for News Corp. bid for DirecTV. However, valuation of Gemstar could be “adversely affected” by regulatory action, which could hurt News Corp. bid for DirecTV, SG Cowan said. SG Cowan pointed out DoJ hadn’t made it clear whether it would go any further than investigate Gemstar. However, if it concluded that violations had occurred, Justice could pursue court-ordered injunctions or other legal remedies. SG said conflicts often can be resolved with consent decrees.

USTA questioned why FCC extended deadline until June 30, rather than USTA’s recommended Sept. 30, for compliance with requirements of CALEA. In comments filed Mon., USTA said it supported Commission’s determination that additional wireline carriers should meet requirements for extension of deadline. However, USTA said, extension for wireless carriers is Sept. 30 and “the Commission provided no explanation as to why it was extending the preliminary deadline to June 30” instead. Later deadline would provide enough time for FCC staff to consider merits of each CALEA petition, USTA said: “Carriers need certainty regarding the capability requirements and the compliance date.”

CTIA said it had signed contracts for research under first phase of its Cooperative R&D Agreement (CRADA) with Food & Drug Administration on cellphone health effects. Studies will provide followup research on issues raised by earlier study overseen by Wireless Technology Research and funded by CTIA over 5-year period, which had become caught up in controversy and raised preliminary issues for further study. Recipients of CRADA contracts are: (1) Integrated Laboratory Systems, Research Triangle Park, N.C. (2) Interuniversity Center on Interaction Between Electromagnetic Fields and Biosystems, Naples and Rome, Italy. (3) Fraunhofer Institute of Toxicology and Aerosol Research, Hannover, Germany. Studies are expected to take up to 2 years to complete and cost more than $1.5 million, CTIA said. It said that “industry fully funded all of the studies recommended by the FDA.” Last month, in news conference with Sen. Lieberman (D- Conn.), Rep. Markey (D-Mass.) had emphasized need for changes in CRADA to ensure that CTIA followed FDA recommendations on specific research proposals (CD May 22 p1). He stressed that independence of FDA’s judgment shouldn’t be compromised. CTIA addressed some of those concerns, saying that changes in scope of work or direction of research “can only be made with FDA approval.” FDA actively will “oversee the research through a series of regular reports and can request additional reports as necessary.” CTIA said scientists themselves would “own their research” and contracts required results to be published in peer-reviewed scientific journals. Markey’s office wasn’t available for comment.

In bid to give national scope to historically local controversies, environmental groups are mounting campaign at FCC to compel more detailed environmental reviews of wireless towers. Friends of the Earth (FOE) and Forest Conservation Council have filed petitions to deny on near-weekly basis at Commission since late March, holding up final approval on 31 sites. Groups also want FCC to not approve future wireless towers until it conducts environmental assessment of its own antenna licensing program. Sudden influx of petitions -- on towers proposed by American Tower, Crown Castle, SBC and others -- appears to be new tactic by groups, which haven’t engaged in such national effort before, sources said. One FCC official said that in last 4 years, only handful of such petitions had been filed, with most centering on historic preservation issues. But recent petitions run much broader gamut, criticizing lack of detail from tower constructors on impacts ranging from migratory bird traffic to potential human health effects from radiofrequency (RF) emissions.