Former FCC Chairman Kevin Martin, who left the commission Tuesday, lists the failure of the D-block auction, the FCC’s inability to drive down cable prices and the absence of agreement on USF and intercarrier compensation revamps as his biggest regrets. Martin, in one of his last interviews as chairman, said he’s not certain how he’s seen by most of those the FCC regulates, but hopes he’s regarded as fair in making decisions. “I hope that they would say that I actually looked at the underlying facts of the issues that were brought before us -- that I gave everybody an opportunity to be heard, but then made a decision based on the facts that were brought, as opposed to just what their political philosophy was.”
President Barack Obama hadn’t chosen either of the FCC Democrats, Michael Copps and Jonathan Adelstein, as interim chairman by our deadline Wednesday. Typically, the new president picks the senior member of his party, in this case Copps. New presidential administrations have in recent years sent a letter in their first few day to one of the commissioners. “I hear it’s in the stack of things to get done,” an industry official said. The FCC commissioners could choose an acting chairman under section 5(a) of the Communications Act. But that hasn’t happened in recent history. Eight years ago, President George W. Bush announced though a spokesman two days after the inauguration that Michael Powell would be chairman. Eight years earlier, commissioners reached an informal agreement that James Quello would serve as interim chairman but then his office received a letter from the White House making it official. The status of several political jobs at the commission is also unclear. Historically, bureau chiefs and other top officials appointed by the chairman generally haven’t stepped down until new appointments are made. If Obama soon chooses Julius Genachowski to be the chairman, as expected, the acting chairman might hold off on making new appointments.
The Rural Cellular Association, Cincinnati Bell Wireless, Sprint Nextel and other small carriers raised concerns about AT&T’s proposed acquisition of rural carrier Centennial. The merger is small by most standards, adding another 1.1 million customers to AT&T’s 75 million. But it will offer the new FCC under Democrat control a first chance to weigh in on wireless industry concentration and signal whether merger policy will change under a new regime.
Sprint Nextel asked the Obama administration to start an emergency communications program built around 100 satellite- based cell-on-light-trucks, known as SatCOLTS. They would be available within hours of an emergency such as Hurricane Katrina, providing immediate communications on the ground, the carrier told the presidential transition team. Sprint estimated at $2 billion the cost of creating the program and running it five years. It could be in place years before a new wireless broadband network using the 700 MHz D-block could get off the ground, Sprint said.
Google and Dell officials told an FCBA wireless committee lunch Thursday that several issues still need to be worked out before the first devices using white spaces will be ready to hit the market. An international standard still must be developed and no decision has been made on whether it will be built from the ground up based on standards in place for Wi-Fi. The FCC still must finalize its rules. Both agree 2010 will be a key year for getting white spaces technology in stores.
The Justice Department asked a federal court in Washington to find AT&T in civil contempt of a court order enforcing a 2008 consent decree stemming from the company’s purchase of Dobson Cellular. The department also filed with the U.S. District Court for the District of Columbia a proposed consent decree, agreed to by AT&T, that would require carrier to pay the government $2 million, which includes the cost of a federal investigation, to settle the complaint. DoJ told the court that when AT&T bought Dobson, it agreed to sell mobile-wireless telecommunications businesses in two rural services areas in Kentucky and one in Oklahoma. AT&T agreed to ensure that the divested businesses were operated independently until they were sold. The carrier turned operation in the areas over to a trustee, but management trust accounts were maintained in the same database as Dobson accounts acquired by AT&T, according to a court filing. As a result, AT&T employees were able to access all account information for the accounts, DoJ said. And AT&T didn’t “adequately inform and instruct” its employees and agents of the confidentiality obligations” they had to follow. The company also didn’t track who received guidance or take steps to guarantee that the guidance was read and understood, DoJ said. Without the trustee’s approval, AT&T encouraged customers in the areas to switch their service to that company and waived early-termination fees for those who did. That violated the order, meant to “preserve the value and competitiveness” of the businesses and ensure that AT&T didn’t have an unfair advantage competing for customers under the management trust, the department said. “It is imperative that companies fully abide by their court-ordered obligations in order for our settlements to be effective in preserving competition and protecting consumers,” said Deborah Garza, acting assistant attorney general in charge of the Antitrust Division. An AT&T spokesman said the company takes seriously its duty to carry out consent decree. “As noted in the stipulation, there is no admission or determination of wrongdoing,” the spokesman said. “We felt it was in the best interest of everyone to simply put this matter behind us.”
A proposed national public safety broadband network using 700 MHz D-block spectrum will be helpful to first responders, but will only be a partial answer to their communications needs, Chris Essid, director of the Department of Homeland Security’s new Office of Emergency Communications said at the FCC Wednesday. Because of many unknowns, the D-block was not a big part of the agency’s national strategic plan, which it sent to Congress last year, he said as part of the Public Safety Bureau’s speaker series.
Sen. Jay Rockefeller, D-W.Va., the chairman of the Senate Commerce Committee, Tuesday welcomed the expected nomination of Julius Genachowski to become the chairman of the FCC. The nomination of the Obama campaign insider is expected to be announced Wednesday or Thursday, probably with that of a federal chief technology officer, said a person familiar with transition planning. Genachowski “has the experience and credentials to successfully reinvigorate the FCC as Chair,” Rockefeller said.
No objections have been registered to TracFone’s petition to the FCC to lift a requirement it obtain separate 911 certification from all public safety answering points in a state before it can offer Lifeline service there, the company told the commission. TracFone has asked instead that it be allowed to certify that it meets 911 requirements after 90 days of inaction by any PSAP (CD Dec 30 p3). The company is the nation’s largest provider of prepaid wireless service. TracFone said in reply comments that it has received certifications from Virginia, Tennessee, and Florida and provides service in the states. It expects to offer 911 soon in Massachusetts and Connecticut but has encountered problems in Pennsylvania, other states and the District of Columbia. The National Emergency Number Association didn’t object to TracFone’s request but said the FCC should require the company to show that has complied with state and local laws on 911, including funding rules. Association officials said they met with TracFone’s CEO and other company representatives and have encouraged 911 authorities to consider TracFone’s requests. “In the end, of course, we cannot and would not attempt to interfere with PSAP decisions on certification of 911 access as that is a local matter,” the group said. Consumer Action and the National Consumers League supported TracFone’s calls for the FCC to change the PSAP certification requirement. “Wireless telephone service has become an essential part of modern life,” the League said. “That is why we have consistently supported the use of Universal Service Fund monies to bring wireless telephone service to low-income consumers via the Lifeline program.” Pennsylvania’s Public Utility Commission asked the FCC for more time to comment.
The National Safety Council called Monday for a total ban on the use of cellphones and other wireless devices while driving, including calls made with hands-free devices. That would go further than prohibitions in several states, which ban the use of cellphones without a hands-free device or sometimes just calls made by teenage drivers. But the council said distraction of drivers is they main problem.