SEIDENBERG PRESSES CONGRESS ON NEXTWAVE AND TAUZIN-DINGELL
Broadband deployment and swift resolution of NextWave spectrum issue were top agenda items Thurs. in discussions between Verizon Co-CEO Ivan Seidenberg and members of Congress, he told us in interview. Seidenberg said he was working Senate side of Hill to drum up support for broadband deregulation, which he said “has got to be the number one issue for our company.” He also said he would urge Congress “to show leadership” in NextWave case: “The government has to settle this thing… Make a business decision, move on and get the spectrum into the hands of the public.” With both Congress and FCC involved, it ought to be possible to “figure out a strategy,” he said.
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Statement on NextWave could indicate Verizon was increasing its pressure on FCC to work out settlement with NextWave, which recently regained its spectrum in a decision by U.S. Appeals Court, D.C. Verizon Wireless, joint venture of Vodafone and Verizon, has urged Commission to work out settlement with NextWave, but said it wouldn’t go with carrier to FCC to bless that type of deal. Verizon Wireless won $8.8 billion in licenses in Jan. re-auction of PCS spectrum, most of which belonged to NextWave. Verizon appeared to be seeking Hill action to encourage FCC intervention. “It would be good if Congress gave the go- ahead” to FCC to seek settlement with NextWave, Seidenberg said. NextWave spectrum problem isn’t anyone’s fault in particular, Seidenberg said: “But the good news is that it’s bothering people [on Capitol Hill] that the spectrum has been tied up so long… The spectrum has been fallow for 5 years.” Members of Congress are aware that billions of dollars in federal budget is at risk, he said.
Conventional thinking has been that if settlement were worked out with NextWave, congressional involvement would be needed because figure probably would fall between $4.7 billion originally bid by NextWave for licenses and $15.4 billion bid by carriers in Jan. re-auction. Sum would be too large for govt. to pay without congressional authorization. Size of shortfall from overturned auction has raised questions about potential impact on federal budget.
Seidenberg said he didn’t think it would be necessary “to do a lot of work” with Senate on broadband issue since members already understand effect broadband deployment would have on nation’s economy. He rejected notion that Verizon might be wavering on support of bill (HR-1542) by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.), which now contains amendment setting network build-out timeline for Bell companies: “I'm not a fan of putting requirements on us and no one else… but that’s a small price to pay to make [broadband deployment] happen.”
Verizon Senior Vp-Public Policy Thomas Tauke said it wouldn’t be long before HR-1542 moved to House floor for vote. He said that although House Majority Leader Armey (R-Tex.) and House Rules Committee Chmn. Dreier (R-Cal.) hadn’t put Tauzin-Dingell on schedule yet, neither had expressed opposition to bill: “The leadership wants to be certain that if the bill comes up, that it has full support.” Seidenberg said he had met with House leaders to discuss issue of scheduling bill, and there was “plenty of time” for them to adjust schedule “when the time is right,” he said: “They have not said that this is a bad piece of legislation.” Seidenberg said he got impression from talking with leadership that delay was result of “process-oriented” issues rather than concerns about substance of bill.
Asked whether he sensed any change in regulatory philosophy under Republican Administration and FCC Chmn. Powell, Seidenberg said there “clearly [has] been a change in dialog” but “the feet haven’t caught up with the mouth yet.” If anything, Verizon has seen “negative things” out of new FCC such as agency’s recent colocation order, he said. To be fair, it takes “change in dialog first” before focus changes, Seidenberg said.
Seidenberg said NextWave wasn’t only wireless issue on Verizon’s front burner, with elimination of spectrum caps rating high too. Allowing companies to have more spectrum would do exactly what Congress wants -- fuel innovation and consumer benefits, he said. It’s “ironic” that NextWave decision arose at same time as Verizon was working to end spectrum caps because both issues stemmed from same problem -- spectrum shortage, Seidenberg said.