Federal Communications Commission (FCC)

BOSTON -- FCC notion of limits to spectrum capacity are outdated, network pioneer told telephony conference here Tues., arguing that in wireless network with smart end devices and multiple repeaters, spectrum capacity actually increased as more users were added. David Reed is creator of Reed’s Law, scaling law for group-forming network architectures, and used to work for Interval Research on consumer media technology. He admitted his argument was “counterintuitive,” but laid out for attendees at Connectivity 2002 by pulver.com that FCC was “wrong” in limiting spectrum allocations rather than encouraging spectrum users to coordinate their services to maximize spectrum use and minimize interference. He said Commission already was running into difficulties with its existing spectrum model in such challenging areas as spread spectrum, software-defined radio, ultra-wideband.

Comcast and AT&T Broadband defended their merger to FCC, saying combination of nation’s first- and 3rd-largest cable companies would be in public interest, wouldn’t violate Communications Act and would “have no anticompetitive effects in any relevant market.” In turnabout, American Cable Assn. (ACA) jumped on board in favor of merger, telling FCC that deal wouldn’t threaten livelihood of country’s more than 900 small and rural cable operators. Comcast and AT&T Broadband, in 328 pages of reply comments, said dozens of people and entities who filed opposing comments last month (CD April 30 p1) based their assertions on “unfounded fears, rank speculation and thinly disguised pursuit of private agendas.” Opponents, who included coalition of 38 national and state groups such as Consumer Federation of America, said proposed $72 billion merger would create corporate behemoth that would raise prices, offer fewer choices in programming, preclude competition on Internet and among Internet service providers (ISPs), dictate technology standards, put customer service needs last. But companies rejected those arguments and said they already had proved otherwise.

FCC could hasten telecom facility deployment on tribal lands by heightening awareness of its Tribal Bidding Credits program, Space Data CEO Gerald Knoblach said. Program reduces costs for winners of wireless auction bids as long as those companies receive commitments from federally recognized tribes to allow deployment of wireless facilities on tribal lands. “Carriers’ carrier” Space Data, which is deploying national network of “balloon-borne wireless repeaters,” has had “generally” positive experience in acquiring such bidding credits, Knoblach said in written comments submitted for joint hearing by Senate Commerce and Indian Affairs committees: “The tribes we have contacted were not fully aware of the bidding credit process… In some cases we have been perceived somewhat skeptically as trying to get something for nothing… Space Data recommends that the FCC place increased emphasis on publicizing the bidding credit process and encouraging the tribes to support such efforts since they have the potential of improving communications to tribal lands on a nonexclusive basis.” FCC Consumer & Govt. Affairs Bureau Chief Dane Snowden said at May 14 hearing that Commission was launching outreach program next month to educate tribes on availability of telecom support programs (CD May 15 p1).

Senate Indian Affairs Committee Chmn. Inouye (D-Hawaii) ordered FCC to file report with panel on Commission’s role in protecting tribal lands from alleged illegal encroachment by wireless tower companies. Joint hearing with Senate Commerce Committee Tues. began with testimony from FCC Consumer & Govt. Affairs Bureau Chief Dane Snowden, who outlined existing and anticipated FCC initiatives to increase Indian Country access to telecom services. Although most members and panelists focused on issue of low penetration rates and measures being taken to address underserved areas, tone of hearing took abrupt turn. William Day, chmn. of United South & Eastern Indian Tribes’ Culture & Heritage Committee, said he questioned legality of FCC’s allowing cell tower companies to satisfy agency’s tribal governmental consultation obligations. This obligation involves determining the impact of telecom infrastructure on tribal lands, including sacred sites. Day lauded Congress for balancing efforts to spur electronic communications deployment on tribal lands and respect for tribal sovereignty: “Unfortunately, your work has been thwarted -- grossly thwarted -- by the Federal Communications Commission and its allies.”

U.S. Supreme Court gave FCC and competitive LECs clean- sweep victory Mon. as it upheld agency’s TELRIC pricing model and its rule requiring Bell companies to bundle uncombined elements when requested by CLECs. TELRIC (Total Element Long-Run Incremental Cost) model guides state regulators in setting prices that ILECs charge when they lease parts of their networks to competitors. Ruling reversed one by 8th U.S. Appeals Court, St. Louis, that had overturned those 2 FCC rules.

Issue of potential impact that communications towers have on migratory birds has emerged with increasing frequency in federal antenna siting decisions fought by environmental groups, according to industry sources and environmental groups. Ruling earlier this month by U.S. Dist. Court, D.C., may pave way for groups battling tower siting to sue under Migratory Bird Treaty Act, several industry sources said. Despite Commission ruling earlier this year that Friends of the Earth and Forest Conservation Council lacked standing to file petitions objecting to dozens of proposed antenna structures, groups since Jan. have filed new objections that highlight harmful impact to migratory birds. Meanwhile, several months after govt.-industry group set accelerated timeline for working out way to streamline siting decisions for communications towers, document is now before FCC after Advisory Council on Historic Preservation (ACHP)-led process didn’t produce agreement.

Dobson Communications said it received refund of $91.2 million of nearly $109 million that carrier paid to participate in NextWave re-auction last year. Dobson subsidiary DCC PCS was high bidder on 14 licenses in that PCS auction. Commission on March 27 returned 85% of NextWave re- auction deposits to carriers that bid. Verizon Wireless said earlier this week it had received $1.5 billion of deposits for 216 licenses. It has challenged FCC in U.S. Appeals Court, D.C., and U.S. Court of Federal Claims to obtain rest of deposit and for ruling that auction contract for licenses under dispute is void (CD April 9 p1). Dobson said that as result of partial refund, it had unrestricted cash of $230 million. Carrier plans to announce first quarter results May 8.

IDT Winstar and Bell companies exchanged fire at FCC this week over terms of interconnection agreements to which RBOCs must be held for fixed wireless provider that has emerged from Chapter 11 protection. Last month, IDT completed acquisition of remaining stake in Winstar, giving it 100% ownership of company that filed for bankruptcy year ago. IDT Winstar filed emergency petition April 17 for declaratory ruling at FCC, citing “immediate threats” from Verizon and Qwest to deny or delay providing facilities. Winstar argued that Communications Act and FCC rules required those facilities and services to be furnished to company. But RBOCs countered that federal bankruptcy law required IDT Winstar to assume and cure past debt on contracts taken on by pre-Chapter 11 Winstar. Qwest told FCC this week: “IDT’s actions have been carefully orchestrated to migrate Old Winstar customers onto its purchased network under terms that disregard the bankruptcy laws, as well as Qwest’s tariff provisions and operational processes.” Meanwhile, General Services Administration (GSA) weighed in at Commission, contending uninterrupted service to federal customers provided by Winstar was “critical” and in some cases had national security implications.

NAB Fri. joined other appeals already filed in U.S. Appeals Court, D.C., seeking to overturn provisions of Bipartisan Campaign Reform Act of 2002, charging new law would “in good part criminalize core political speech.” Earlier appeal was filed by 27 plaintiffs -- led by bill’s principal opponent on Senate floor, Sen. McConnell (R-Ky.) -- who charged it “would radically alter, in a fundamental and unconstitutional fashion, the ways citizens, labor unions, trade associations [etc.] are permitted to participate in our nation’s democratic process.” Law goes into effect Nov. 6, following next fall’s elections.

Coalition of 38 national and state groups, including Consumers Union, Cal. Public Interest Research Group, Center for Digital Democracy (CDD), Mass. Consumer Coalition, Empire State Consumer Assn., Tex. Watch and Va. Citizens Consumer Assn., came out against proposed merger of AT&T Broadband and Comcast. Comments on $72 billion deal were due on at FCC Mon., replies May 14. Merger would combine first and 3rd largest cable companies in U.S. “A combined AT&T Comcast, the nation’s largest cable company, would have the power to continue raising prices, limit choice in programming, dictate technology standards and network architecture, and ignore customer service issues,” said Mark Cooper, dir. of research for Consumer Federation of America. Organizations argued that cable industry and FCC in past had believed erroneously that alternative technologies such as satellite and DSL would discipline cable’s market power. Groups said cable “still dominates” video and high-speed Internet service and has charged low price for digital video and high prices for cable modem, although each service costs “substantially the same.” They said efficiencies claimed by Comcast Pres. Brian Roberts in recent Senate hearing (CD April 24 p3) were “not likely to be passed on to consumers because of a lack of competition,” that open set-top box standard wouldn’t be advanced by merger and that open communications networks would suffer setback as result of deal. Merger would increase level of concentration in regional and national markets by 5 times DoJ threshold, they said.