The FCC in a report to Congress released late Wed. agreed with the Spectrum Coalition for Public Safety, representing law enforcement groups across the U.S., that the 24 MHz of 700 MHz spectrum set to go to public safety after the DTV transition should be adjusted to allow more ambitious broadband uses. But the Commission refused to support demands that public safety get an additional 6 MHz of spectrum.
NTIA Dir. Michael Gallagher will leave the agency early next year, as expected. He had led the agency since shortly after the departure of Nancy Victory in Aug. 2003, though he wasn’t confirmed by the Senate until Nov. 2004. Gallagher is expected to be replaced, at least in an acting capacity, by his deputy John Kneuer, industry sources said.
The National Capital Region Interoperability Program -- which has been testing public safety communications on 700 MHz through an experimental FCC license in D.C. (CD Aug. 28 2004 p1) -- told the Commission public safety officials see widespread use for the spectrum in their operations. All the public safety officials in the region said they see at least some use in their departments. for equipment operating on the spectrum, said an NCR report filed with the Commission. The report came on the eve of a weekend House vote setting a hard date for the DTV transition, which will provide public safety 24 MHz of 700 MHz spectrum -- less than the 30 MHz some public safety officials have sought.
Major wireless carriers face an uphill battle persuading the FCC to suspend a Dec. 31 deadline for 95% of handsets be location capable, at least based on limited waivers granted so far for smaller Tier 3 carriers, said industry and public safety sources.
The Wireless Communications Assn. and a group of its members warned the FCC in comments filed this week that unless proposed rules governing the relocation of BRS licensees from the 2150-2162 megahertz band to the 2.5 gigahertz band are modified the business plans of BRS operators would be harmed, as would their ability to continue to add customers as this transition gets under way. The BRS docket had pitted WCA and its members against CTIA and wireless carriers, particularly Verizon Wireless, which has been the most aggressive in its arguments. Verizon Wireless said the transition rules should “not be an avenue for incumbent licensees to use the band-clearing process to gain a windfall profit or to fund their entry into new business ventures.” CTIA called for a 15-year sunset date for BRS relocation. Sioux Valley Wireless, a BRS operator in S.D. with 2,300 wireless broadband customers, told the FCC if the Commission doesn’t get relocation rules right it would harm Sioux Valley’s ability to continue to serve its customers. Comr. Adelstein is from S.D. Sioux Valley charged that mobile operators are lobbying for a competitive advantage through “outdated relocation procedures that serve their own needs exclusively, with no regard for their impact on the broadband service” the company already offers. But the WCA relocation plan would “ensure that we will not be forced to bear the substantial cost of our own involuntary relocation, and that the relocation process will not otherwise cause irreversible damage to our services.”
The National Emergency Number Assn. (NENA) raised red flags about a request from wireless reseller TracFone that the FCC potentially lighten the regulatory load placed on it if it’s designated as the first wireless reseller with eligible telecommunications carrier (ETC) status under the USF lifeline program. Public safety sources said Tues. while TracFone is relatively small compared to a few of its peers, the issues raised aren’t, especially if other resellers also apply for ETC status.
The 8th U.S. Appeals Court, St. Louis, handed wireless carriers what CTIA characterized as a “major victory,” overturning a Minn. law that prohibits the companies from changing the terms and conditions of subscriber contracts that “could result” in higher rates or an extended contract term, without consent from the subscriber. The case pitted Verizon Wireless, Sprint, T- Mobile and other carriers against the state of Minn. “We have always maintained that state regulation, like that in Minn., imposes unnecessary costs upon the delivery of service and limits choice, thus not benefitting the wireless consumer,” said CTIA Pres. Steve Largent. “The court’s ruling that Minnesota’s statute is ‘impermissible rate regulation preempted by federal law’ is proof that consumers risk higher costs when states attempt this type of command-and-control regulation.” A spokeswoman for Minn. Attorney Gen. Mike Hatch said: “We have reviewed the decision. We have not decided what the next step is.”
Verizon Airfone said Mon. if the FCC holds an auction of 800 MHz spectrum for air-to-ground (ATG) use in early 2006, the company can offer inflight wireless Internet access in 2007. Airfone turned up the heat on the FCC to set an auction date after the Commission released Fri. an order tying up the loose ends that had to be addressed before an auction could take place (CD Dec 12 p1).
A self-deprecating FCC Chmn. Martin came up with some edgier barbs than some were expecting Thurs. night at the FCBA Chmn.’s Dinner. Martin poked fun at the famously tentative nature of many of his appointments. Talking about the recent birth of his first child, Luke, Martin joked: “I don’t want to get ahead of myself. Luke is currently our acting interim son.” Martin joked that parenting has proven tough. “It’s very odd how some things that work so well for me as chairman just don’t seem to work for me as a father,” he said. “The other night I just couldn’t get Luke to stop crying. I was so frustrated. I finally said ‘Luke, if you don’t stop crying, I'm going to going to reassign you to CGB.'” Several sources suggested that comment was probably wasn’t so funny to FCC staffers moved to the Consumer & Governmental Affairs Bureau. Martin made fun of criticisms that his decisions have been based on politics. “Last week one reporter wrote that every decision I make is political,” he said. “Now that one really bothered me. I mean all 12 focus groups said if we had a baby that would insulate us from that criticism.” He also made light of criticisms that the Martin FCC has been a closed shop, with staffers fearful of talking to journalists. “One reporter even claimed that not one piece of paper gets out of the Commission without my personal approval,” he said. “That’s not true. There have been exactly 5 pieces of paper. All of the people responsible have been dealt with.” Martin closed with a list of reasons it’s fun to work at his FCC. The top reasons: “(3) Plenty of time for golf because there’s no need to work on wireless issues. (2) Trips to Siberia not limited to the International Bureau. (1) KGB-like atmosphere grows on you after a while.” Earlier, Martin was “roasted” by former NAB Pres. Edward Fritts, former FCC Chmn. Richard Wiley and AT&T Senior Exec. Vp James Cicconi. “I was asked to do a real roast of FCC Chmn. Martin,” said Wiley: “Like, right - I'm going to do that.” Comparing Martin’s youthful looks to Harry Potter’s, Wiley said Martin was the only associate Wiley, Rein & Fielding ever hired “directly from grade school.” Ex-NAB Pres. Eddie Fritts said Martin “is so young that when he showed up late for work one day, local broadcasters located him by issuing an Amber Alert.” Fritts added, in staccato delivery: “Kevin is the only public official with an open invitation to the Neverland Ranch. Kevin is an indecency hawk but we wonder about his credentials, since he’s never been admitted to an R-Rated movie.” Cicconi riffed on Star Wars comparisons, since Martin’s son shares a first name with Luke Skywalker. “Is it me or is [Chief of Staff] Dan Gonzalez looking a little like Yoda these days?” Cicconi asked.
Alltel’s spinoff of its wireline assets, which are being merged with Valor, is expected to face few regulatory hurdles at the FCC or Justice Dept., analysts said Fri. But Stifel Nicolau warned that mergers may face increasing scrutiny as consolidation continues. Alltel officials said they hoped regulatory approvals will be completed by late spring or early summer.