Federal Communications Commission (FCC)

NextWave negotiations finally ended with announcement Fri. by FCC Chmn. Powell that settlement had been reached for company to surrender all its C- and F-block licenses. He said NextWave’s licenses would go to wireless carriers that won them in re-auction and “the American taxpayer will receive $10 billion, more than twice the amount than would have been received had NextWave kept the licenses in accordance with recent court rulings.”

PHILADELPHIA -- FCC’s 3 newest commissioners told state regulators meeting here this week that they valued their experience and expertise and were willing to listen and collaborate with them in addressing problems that affect both interstate and intrastate telecom service.

House Speaker Hastert (R-Ill.) expects to move broadband legislation by year-end, but it will remain separate from any economic stimulus package that reaches House floor, aide Timothy Kurth said Tues. at Schwab Capital Markets conference in Washington. Kurth said bill (HR-1542) by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.) was seen by Hastert as legislative vehicle to spur broadband deployment, particularly since it already had been approved at the committee level: “My boss is looking at completing action on this by the end of the year.” He declined to comment on possible movement of Tauzin-Dingell or other deregulatory measures in the Senate, where opponents such as Senate Commerce Chmn. Hollings (D-S.C.) not only have vowed to block such legislation, but have introduced bills that would bolster regulation of Bell companies and increase fines for noncompliance.

Verizon Wireless has been selected by federal govt. to make short-term wireless priority access service (PAS) available in Washington and N.Y. and eventually other cities. National Communications System (NCS) Deputy Mgr. Brent Greene told us last week that Washington would be first city to have wireless priority access system to ensure that public safety agencies had uninterrupted access to wireless networks during emergencies (CD Nov 5 p1). Verizon Wireless won first contract for priority access system for wireless networks, with Washington to be first to receive service, followed by N.Y., NCS spokesman said. Formal announcement is expected later this week. Federal govt. is interested in adding Salt Lake City to initial contract, city where Winter Olympics will be held in Feb. Govt. hasn’t chosen carrier for longer term priority access solution. Financial value of short-term contract to Verizon Wireless wasn’t available. FCC spokeswoman confirmed that Verizon Wireless had applied for waiver from Commission to provide wireless PAS. Waivers have been expected for a short term solution because system would be put together in too short a time to provide all of PAS capabilities laid out under FCC guidelines issued last year. In that order, FCC had allowed commercial mobile radio service providers to offer, but didn’t require, PAS to govt. public safety workers in emergencies. NCS spokesman confirmed system would provide emergency access on mobile networks to officials such as national security personnel, parts of executive branch, members of Congress and federal, state and local emergency officials. Since Sept. 11 renewed interest in having wireless PAS system available, CTIA said industry would be able to do so for 500 people within 60 days. NCS also is soliciting proposals for longer term, more comprehensive system, to begin rollout by end of 2002. Before system can begin operating, FCC waiver is needed, although agency already has expressed interest in expediting process, NCS’s Greene said.

Washington will be first city in nation to have wireless priority access system in govt. contract award to mobile carrier that will be unveiled as early as this week, National Communications System (NCS) Deputy Mgr. Brent Greene said. System is expected to be in place in mid-Dec. amid renewed interest by federal govt. and wireless industry after Sept. 11 attacks in finding ways for public safety agencies to have uninterrupted access to wireless networks during emergencies. In interview with Communications Daily, Greene said first contract covered short-term solution for priority access and that other, as yet-unnamed cities also would be covered under initial system. He called near-term priority access system “a major step toward a more complete solution in following years.” Long-term solution, which would consist of nearly national footprint with single carrier, is to be rolled out “late in 2002,” Greene told us. That will “be a much more user friendly solution.” While both legs of wireless priority access system at outset will use single carrier, within 3-5 years other carriers may be added to contract, depending on funding, he said. Within last several weeks, Greene said he and Richard Clarke, special adviser to President Bush for cyberspace security, have talked with FCC Chmn. Powell about Commission waivers likely to be needed for short-term PAS system. “They understand that,” he said of FCC’s view on need for near-term waivers.

Alaska Regulatory Commission (ARC) set interim unbundled loop rate for ACS of Anchorage at $14.92 rather than $24 incumbent carrier had sought, saying ACS’ proposed rate was based on “untested and unapproved” costing methodology. ACS in Doc. U-96-89 had contended its running of FCC forward- looking cost model and its own internal cost model produced rate between $24 and $25. But rival General Communications Inc. (GCI) challenged rate on grounds ACS’s cost modeling wasn’t consistent with FCC’s rules and wasn’t model used by ACS in its Fairbanks or Juneau markets. GCI said cost modeling that followed FCC rules and methodology applied in ACS’s other Alaska markets produced $14.92 Anchorage loop rate. ARC agreed with GCI’s position, saying ACS had failed to show its modeling approach had regulatory approval at state or federal levels. Agency said it couldn’t order interim UNE rate based on cost modeling and data inputs that hadn’t been subjected to full regulatory scrutiny.

It may be “some time” after scheduled 2006 DTV transition date before analog broadcasters vacate spectrum at 700 MHz for public safety users in certain markets, FCC Chmn. Powell told House Commerce Committee Chmn. Tauzin (R-La.) and Rep. Harman (D-Cal.) in letter, which was sent Oct. 12 but only now made public. Cal. could be one area where public safety wireless users would be most affected by delayed transition because state had 5 licenses on TV Chs. 63, 64, 68 and 69, he said in response to questions raised by Tauzin in earlier letter. “Notably, the Los Angeles area has five digital allotments for Channels 60-69, which means the spectrum in that city will definitely be encumbered until a digital allotment is available further down in the ‘core’ toward the end of the transition,” Powell said in letters to Tauzin and Harman which inquired about range of public safety spectrum issues in wake of Sept. 11 attacks. In detailed answers to queries, Powell described Commission efforts to examine other spectrum for public safety operations, including 138-144 MHz and 4.9 GHz. “I want to assure you that we will continue our efforts to encourage interoperability, particularly on a nationwide level, remove regulatory barriers that hamper realization of interoperability and take other measures to improve and ensure effective public safety communications,” he wrote.

Three FCC commissioners agreed Fri. that Commission probably should take some action to encourage deployment of broadband services. Addressing broadband summit sponsored by NARUC and National Exchange Carrier Assn. (NECA), Comrs. Copps, Abernathy and Martin all said FCC had role in eliminating regulations that acted as disincentives to broadband build-out. Beyond that, Copps, lone Democrat, seemed to take more proactive role as he questioned what was so wrong about govt. involvement in such major business development. Martin, on other hand, pushed elimination of sharing rules that he said discouraged carriers from expanding their own facilities. Abernathy saw possible role in encouraging timely rural deployment. Commissioners were among numerous industry and govt. representatives, including Bruce Mehlman, asst. Commerce secy. for technology policy, who offered views about state of broadband and wisdom of govt. involvement in stimulating its rollout. Mehlman outlined for National Summit on Broadband Deployment “critical questions” that faced Administration in that area as well as regulatory issues confronting network build-outs at state and local levels.

Bush Administration weighed in for first time on wireless spectrum cap Wed., with NTIA Dir. Nancy Victory urging FCC Chmn. Powell to enact “full and immediate repeal.” In detailed letter, she told Powell that retention of limits wouldn’t preserve competition but would “more likely result in consumer harm.” Letter came as FCC was set to review continued need for wireless spectrum cap by year-end, with issue expected to be on agenda for Nov. 8 Commission meeting. Cap for commercial mobile radio service (CMRS) operators now is set at 45 MHz for most markets and 55 MHz in rural areas. Administration also urged Commission to do away with cellular cross-interest rules. “Given the current vigorous level of competition in the CMRS marketplace, the existence of other mechanisms to safeguard against anticompetitive activity and detrimental consolidation, and the potential consumer harms if the rules are left in place, prompt repeal is not only warranted but required,” Victory said.

Wireless carriers, equipment manufacturers and several incumbents that may have to be relocated to make way for 3G largely agreed with govt. effort to examine 1710-1770 MHz and 2110-2170 for advanced wireless services. But in comment period that closed this week at FCC, diverse group of stakeholders in 3G proceeding differed on details. Importance of global harmonization for 3G services and adequate replacement spectrum for incumbents that may be moved to make way for advanced wireless services were among themes running throughout feedback received by FCC. CTIA reiterated that as much as possible of bands allocated for mobile satellite service (MSS) should be reallocated for services “with more clearly demonstrated needs.” Comments marked latest round in positioning on 3G spectrum among MSS providers, MMDS licensees, wireless carriers and others at FCC. Latest 3G feedback also was first that FCC had received since govt. released new plan for advanced spectrum earlier this month that would take bulk of 1755-1850 MHz band occupied by Defense Dept. off table for now. Among concerns raised by incumbents was filing by New ICO that cautioned that reallocation of 2 GHz MSS spectrum for 3G would “represent an arbitrary, unprecedented departure from a reasonable allocation policy that has been under development for almost a decade.”