Federal Communications Commission (FCC)

Creation of “a multibillion-dollar” Digital Opportunity Investment Trust -- with much of proceeds earmarked for public broadcasting -- is recommended in 2-year study to be released today (Thurs.). Fund would be financed by proceeds from future spectrum auctions, which Congressional Budget Office estimated would produce $18 billion over next several years. Authors of report are Newton Minow, FCC chmn. in Kennedy Administration, and Lawrence Grossman, former pres. of PBS and NBC News. Recommendations in report would require approval by Congress for use of federal money before fund could be established.

NTIA and FCC released final reports Fri. providing details on challenges to sharing, segmenting or clearing Dept. of Defense- occupied bands and MMDS and ITFS spectrum, setting stage for what some see as need for high-level 3-way talks on possible compromise among FCC, Pentagon and Commerce Dept. DoD evaluation, appendix to NTIA report, said terrestrial military systems couldn’t vacate 1.7 GHz until 2010 and legacy space systems would need access until 2017, dates much later than timelines in federal 3G studies. Still, several industry sources said they were heartened by what they called realistic relocation cost estimates that NTIA provided for 3 options, which range from $2.2 billion to $4.5 billion. NTIA report laid out 3 options for band sharing or segmentation, including recently emerged alternative that involves out-of-band pairing and phased-in migration of incumbents. Despite alternatives, “this does not necessarily mean that the government band is the right choice for 3G,” Naval Rear Adm. Robert Nutwell said at NTIA briefing. He called on wireless industry to make “better case” for 3G spectrum needs.

Broad group of wireless, GPS, satellite radio and air transport interests urged FCC not to take final action on operation of ultra wideband (UWB) equipment under Part 15 rules without issuing further notice of proposed rulemaking (NPRM). In letter sent late Tues. to Chmn. Powell, 26 companies and trade groups stressed it would be “premature and inappropriate for the Commission to adopt any final rules at this time.” Agency issued NPRM on UWB operations last May (CD May 11 p1), but it didn’t contain specific regulatory language, group said. Since then, FCC has received large volume of test results on potential interference of UWB operations in both GPS and non-GPS bands. “However, the interested parties cannot logically extrapolate from the various test submissions any comprehensive picture of the direction of the Commission’s final thinking with respect to a potential regulatory framework,” group said in letter obtained by Communications Daily. Companies signing letter include AT&T Wireless, Lockheed Martin, Nortel, Qualcomm, Satellite Industry Assn., U.S. GPS Industry Council, WorldCom.

Cable operators, programming networks, broadcasters, DBS providers, consumer electronics interests, Bell companies, ISPs, sports leagues, software developers, electronic program guide creators, personal video recording firms and consumer groups all battled over possible interactive TV (ITV) regulations at FCC. In comments filed last week in response to Commission’s ITV inquiry, 28 entities debated whether federal govt. should regulate nascent interactive market in wake of AOL’s takeover of Time Warner (TW) earlier this year. They also feuded over how govt. should define interactive services if it chooses to regulate them.

LAS VEGAS -- FTC Comr. Orson Swindle urged wireless industry at CTIA Wireless 2001 show here to focus on self-regulation for protecting consumers’ location-based information, saying that could stave off congressional action. “If you're going to wait around and not deal with a critical issue, then government is probably going to turn around and do something and I don’t think that’s the best solution,” said Swindle, who lauded CTIA petition to FCC that proposed principles for protecting privacy of location-based information. He warned of “incredible harm if we do it the wrong way, especially if we rush into it screaming ‘Oh, my God, Henny Penny, the sky is falling’ before we even understand the business models we are dealing with.”

LAS VEGAS -- Several Latin American regulators, speaking on prelude to CTIA Wireless 2001 show here, urged greater regional harmonization of wireless rules and frequency selections as policymakers wrestled with issues such as how to bolster universal service and roll out 3G. “We have not achieved total integration in Latin America to facilitate communications,” Argentina’s Communications Secy. Henoch Aguiar said, noting that in some cases it’s more expensive to connect between 2 countries in region than with callers elsewhere.

Advisory Council on Historic Preservation (ACHP) signed agreement at meeting in Little Rock Fri. designed to streamline communications tower colocation reviews. Agreement was crafted by FCC, ACHP and National Conference of State Historic Preservation Officers. Pact eases review procedures for colocating antennas on existing towers under Sec. 106 of National Historic Preservation Act (NHPA). State and tribal historic preservation officers had discussed procedural changes with communications industry following flood of new applications as result of recent growth in wireless communications towers. Wireless industry had sought changes as way to help relieve administrative backlogs that were delaying tower construction. Agreement is product of 7 months of industry and federal, state and tribal govt. negotiations. Under pact, most colocations on existing towers will be exempt from ACHP siting review procedures. Sec. 106 requires federal agencies to consider effects of their undertakings on historic properties. Agreement acknowledges that effect on historic properties of antenna colocations on towers is “likely to be minimal and not adverse.” FCC said Fri. that national agreement was designed to relieve “unnecessary administrative burdens” on agency licensees, tower companies, state historic preservation officers and Commission “while protecting the goals of the NHPA.” Agreement allows antenna to be mounted on tower built on or before March 16, 2001, unless it: (1) Will increase substantially in size, based on factors such as raising height by more than 10%. (2) Has been determined by FCC to have impact on one or more historic properties unless there’s “no adverse effect” finding. (3) Is under pending environmental review or FCC proceeding involving Sec. 106 compliance. Additional caveat includes cases where licensee or tower owner has received notification that FCC has received complaint about adverse effect. Colocation on towers constructed after March 16 also is covered with similar caveats. “This agreement provides for flexibility now for carriers and tower companies to move forward,” PCIA Senior Vp-Govt. Relations Robert Hoggarth said. “The fundamental advantage of this agreement is simply that it allows historical preservation officials to focus on the small percentage of towers that do have an impact.” FCC signed off on agreement last week after it had allowed additional time earlier this year for comments on draft from tribal representatives. “Tribal concerns need to be addressed in this process,” Hoggarth said. “The programmatic agreement is the beginning as opposed to the end,” he said, noting PCIA was meeting with representatives of southern and eastern tribes today (Mon.) to begin identifying model siting agreement. Still, FCC Comr. Tristani expressed concerns that agreement fell short of agency’s commitment to facilitate tribal consultation in agency regulatory processes. Commission received nearly 20 comments from tribal govts. on draft, she said. “The overwhelming majority told us our approach is not working,” Tristani said. “This response is prima facie evidence that our understanding of tribal consultation is misguided.”

Despite sharply divided Commission, FCC Mass Media Bureau approved 32 radio station license transfers in 26 markets, clearing 75% of backlog of long-standing license transfer applications. Approval sparked strong dissenting comments by Comrs. Ness and Tristani, and support by Chmn. Powell and Comr. Furchtgott-Roth. Ness said FCC should have begun systematic review of FCC licensing process at same time that decisions were announced, but Powell said implementation could be reviewed as part of pending rulemaking on radio market definitions. Stations generally were in medium and small markets. NAB Pres. Edward Fritts called announcement of action on radio licenses “welcome news.”

House Commerce Committee will introduce new bill “in next month or so” to replace last session’s HR-2420 that would give Bells more regulatory freedom for data transmission and expects easy passage in House but harder job in Senate, Ken Johnson, spokesman for Committee Chmn. Tauzin (R-La.), said Thurs. Johnson, who participated in panel discussion at Precursor Group conference in Washington, urged audience not to “mistake inaction with indecision” on part of Committee because it still was committed to basic HR-2420 concept. Bill probably will be same as last year’s version although it could change during legislative process, Johnson said. Tauzin looks at current version of bill as setting tone for discussion, he said.

Qwest CEO Joseph Nacchio told state regulators fastest way to develop local competition was to “give competitors the freedom to take risks and enjoy the reward.” In keynote speech Mon. at NARUC winter committee meetings in Washington, he called himself “unabashed capitalist” willing to put money at risk where there’s best possibility of return. Talk came just one day before NARUC decision on its policy toward 2 federal-level deregulation proposals.