Cal. Assembly passed amended version of Senate telemarketing bill (SB-771) that would establish state no-call list for persons who want to block telemarketing calls. Senate was expected to concur with Assembly’s amendments, which would limit list registrations to 3 years, establish $1 consumer signup fee, make list access free to very small telemarketing companies, clarify exemption for calls to established customers. Other exemptions in original bill include charities and political organizations. No- call offenses would be punished by fine of $500-$1,000 per call. Concurrence by Senate will send bill to Gov. Gray Davis (D), who has expressed his support.
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FCC unveiled details of its restructuring plan at Thurs. agenda meeting, most dramatic of which would be combination of Cable and Mass Media Bureaus into newly named Media Bureau. As expected, bureau would include separate Office of Broadcast License Policy, which would be headed by current Mass Media Bureau Chief Roy Stewart, FCC Chief of Staff Marsha MacBride said at media briefing. Also as expected (CD Aug 29 p1), bureau would handle “postlicensing” policy for direct broadcast satellites (DBS), which would be shifted from International Bureau. Common Carrier Bureau would be renamed Wireline Competition Bureau and would have greater emphasis on technical and economic analysis, said Mary Beth Richards, special counsel to FCC Chmn. Powell, in presentation after meeting’s regularly scheduled business. Under changes, which require approvals from labor union, 8th floor and congressional appropriators, Consumer Information Bureau would carry new name of Bureau of Consumer Information & Intergovernmental Affairs and have broader policy functions. Wireless Bureau and Enforcement Bureau would assume some new duties, but their structure would remain intact. “This is a substantial effort at reorganization but it’s not radical,” Powell said.
FCC Chmn. Powell praised communications companies -- “our regulatees” -- for their “heroic efforts” to keep telecom and media infrastructure operating in Tues.’s terrorist attacks and their aftermath (CD Sept 13 p1). Speaking at beginning of Commission’s agenda meeting Thurs., he singled out for special praise Verizon’s struggles to maintain cellular communications in disaster areas and AT&T’s relief efforts. He also praised efforts of broadcasters and cable operators to deliver signals to N.Y. residents after TV towers on World Trade Center were destroyed when buildings collapsed. Through their work “the citizens of N.Y. are receiving the news that they need to know,” Powell said. He said he also wanted to extend his sympathies to companies such as Verizon, Genuity and TV stations that lost personnel. “There are no words to capture the depth of collective sadness,” he said.
Network equipment integrated circuit maker NetComm announced new technology to improve security of 802.11a- and 802.11b-based wireless local area networks. Called Key Hopping, system is based on MD5, same technique used for secure credit card authentication over wireline Internet. Technology uses key management system that allows radio to switch security keys frequently to stop intruders from adapting to air traffic and breaking encryption, company said. System is improvement on Wired Equivalent Privacy (WEP) security native to 802.11 networks because WEP key patterns are identified, analyzed and “cracked” easily in as few as 15 min., spokesman said. Company said it would work with original equipment manufacturers to integrate new security into end-user access cards and access points by year-end.
Ultra-wideband developer XtremeSpectrum told FCC in letter Mon. that it no longer would object to emissions limits in GPS band supported by GPS Industry Council (GPSIC). “Although XtremeSpectrum continues to believe its original proposal fully protects other spectrum users, including GPS, we believe that the GPSIC’s continuing demands for unrealistically low UWB emission limits in the GPS band has been an obstacle to resolution of this proceeding,” Xtreme CEO Martin Rofheart said: “After 3 years, 7 studies and more than 700 filings, it is time to bring the proceeding to a speedy conclusion so that consumers and the economy can benefit from the wireless communications capabilities of ultra-wideband technology.” XtremeSpectrum told FCC that GPSIC had disputed its engineering analysis on interference concerns with UWB and had argued for lower emission limits in GPS band. Letter said company continued to stand behind its original analyses and said “no additional protection is needed.” But it added: “In the interest of a prompt resolution, XtremeSpectrum will not object to emissions limits in the GPS band consistent with those demanded by the GPSIC.” They would include limits that were 35 dB below certain levels of Part 15 and additional 10 dB suppression of spectral lines as measured with 10 kHz resolution bandwidth. Company stressed it was adopting position only to speed resolution of UWB proceeding. GPSIC had contended Xtreme’s proposed GPS-band limit of 18 dB below Part 15 levels was too high, urging that UWB emissions be held to 35 dB below Part 15 limits instead. That level would meet worst-case scenarios outlined by GPSIC in its analysis, Xtreme said. “Solely to take the issue of GPS emissions limits out of contention, XtremeSpectrum will cede to the GPSIC’s demands,” XtremeSpectrum wrote. Company said it wouldn’t object to limits in GPS bands at 35 dB below Part 15 limits, plus additional 10 dB suppression of spectral lines. XtremeSpectrum also reiterated its support for indoor-only restriction for UWB and modified test for peak-to- average ratio. Xtreme said it would back any of 4 options now before FCC -- GPSIC’s proposed limits, earlier Xtreme proposal of 18 dB, original FCC proposal for 12 dB below Part 15 and recent request from Time Domain for Part 15 limits to be in effect across spectrum. “XtremeSpectrum emphasizes that it does not seek restrictive rules to hinder other manufacturers,” letter said. “We are eager to compete in the marketplace, not the Commission hallways.”
Original objectives of Telecom Act such as ensuring competition, deregulating as competition takes hold and extending universal services continue very valid today, although how to get there has been subject of debate, former FCC Comr. Susan Ness told general session of NATOA conference in Miami Tues. As for what she thought had worked, she said new facilities-based competitors were coming in with their infrastructure and in other technologies such as wireless, competition, though slow, is taking hold and satellite is competing for provision of Internet services benefitting rural areas. Ness listed 3 main lessons from Telecom Act: (1) Marketplace is messy. Companies come and go and business plans don’t always work. (2) It’s possible to lay groundwork for competition but companies can’t be forced to compete. There’s no killer application for competition. (3) Technology also is messy and difficult to get into place. For example, set-top boxes for cable took long time to emerge. Asked what she would have done differently with Act if she were to do it all over again, Ness said she would build better relationship with state colleagues, work more closely with Congress in developing certain sections of Act and remove uncertainty over classification of cable-delivered Internet service.
Fifth U.S. Appeals Court in New Orleans late Mon. upheld most of FCC’s May 2000 “CALLS” order that reformed universal service and access charges for Bells and other price-cap-regulated telcos. Acting on appeal by consumer groups, court said most of FCC’s order was reasonable. However, it remanded 2 parts of it, saying Commission hadn’t provided enough justification. Court didn’t vacate those provisions but FCC will have to open proceeding to justify them. They are: (1) Size of new universal service fund, which FCC had set at $650 million per year. Court said it wasn’t enough that figure was recommended by interindustry CALLS coalition or that agency chose number between the highs and lows of various industry estimates of how much implicit subsidy had to be converted to explicit funding. (2) FCC’s use of 6.5% productivity factor, called X-factor, which is important part of formula used to set access rates.
Morning terrorist attacks Tues. on World Trade Center and Pentagon led to shutdown of Congress, although process was far from quick or orderly. Shortly after first of 2 hijacked planes crashed into World Trade Center in N.Y., House Speaker Hastert (R- Ill.) -- who is immediately behind Vice President Cheney in succession to presidency -- was evacuated by U.S. Capitol Police and Secret Service agents to secure, undisclosed location. Senate Majority Leader Daschle (D-S.D.) also was said to be in secure location, along with handful of other unnamed members of Congress. Top aide to Hastert said that while some time passed before orders were issued to evacuate all congressional personnel, after Hastert’s quick departure “a lot of people decided it would be a good idea to leave.” At least one hearing was interrupted in progress, and many others were cancelled.
Cable industry analysts said they doubt reported AOL-Time Warner (AOL-TW) bid for AT&T Broadband could pass regulatory muster, but one observer said govt. disarray over ownership caps could provide “a window of opportunity” for megadeal. Prospect of such corporate marriage was raised by Liberty Media Chmn. John Malone in discussions with analysts, many of whom said any alliance between AT&T Broadband, largest cable operator in nation with 15.3 million subscribers, and TW Cable, second largest cable operator with 12.8 million, would raise serious regulatory questions, even with courts openly criticizing FCC’s cable cross- ownership cap and new FCC Chmn Powell’s stated reluctance to impose such limits. AOL declined comment. AT&T officials said they were exploring their restructuring options and were in talks with “more than one company” but declined to identify any.
In response to 1999 ruling by 10th U.S. Appeals Court, Denver, vacating part of FCC’s rules on customer proprietary network information (CPNI), agency called for comments on how carriers should obtain consent from customers for use of CPNI. In particular, agency asked whether it should adopt opt-in or opt-out consent. Agency also offered interim guidance on how carriers should obtain customer consent until new rules were in place. CPNI includes where, when, and to whom customer place call, as well as types of service offerings to which customer subscribes and extent to which service is used. It’s considered useful for marketing purposes. Agency also said its current rules don’t give any time period after which customers could be assumed to approve carrier use of their CPNI when opt-out consent was used. FCC said that pending approval of new rules it would use 30-day period from customer receipt of notice as appropriate consent period “but may permit some shorter period if supported by an adequate explanation from the carrier.” Original FCC order required carriers to gain opt-in consent from customers but court said that requirement wasn’t tailored narrowly enough.