Republican senators seeking to limit FCC power over the Internet plan to introduce Wednesday legislation designed to stop the FCC from applying common carrier regulations to broadband, said telecom industry officials. Under the Freedom for Consumer Choice (FCC) Act, the commission couldn’t regulate unless it first showed harm to consumers from a lack of competition and it weighed the possible costs of action against the benefits. Passing the legislation is a long shot in the current political climate, telecom industry analysts said.
Nokia Siemens Networks (NSN) will build and run a 4G network for Harbinger Capital Partners and its SkyTerra unit, under an eight-year, $7 billion agreement, the companies said Tuesday. The new business, called LightSquared, said it will offer wholesale terrestrial-only, satellite-only and combined satellite-terrestrial services starting in the second half of 2011. The agreement is a major step toward using largely undeveloped spectrum allocated for satellite companies at the terrestrial level, and it could mean an important new customer for tower owners, analysts said. FCC Chairman Julius Genachowski lauded the agreement as an industry endorsement of the commission’s efforts on broadband spectrum.
The FCC should look at whether prices are competitive as it examines special access rates, said William Taylor of NERA Economic Consulting at a commission workshop Monday. Economists Taylor and Dennis Carlton of Compass Lexecon represented the incumbent local exchange carrier perspective, while Bridger Mitchell of Charles River Associates and Lee Selwyn of Economics and Technology, Inc., represented the NoChokePoints Coalition viewpoint.
The FCC sought comment on how wireless devices can be made more accessible for the blind. “We are concerned that people who are blind or have other vision disabilities have few accessible and affordable wireless phone options,” said a notice Monday by the Wireless and Consumer Affairs bureaus.
Senate spectrum legislation introduced Monday would authorize incentive auctions to pay federal and commercial users that voluntarily give up unused frequencies and would require a national spectrum plan. The Spectrum Measurement and Policy Reform Act, sponsored by Sens. Olympia Snowe, R-Maine, and Communications Subcommittee Chairman John Kerry, D-Mass., aims to update national spectrum planning, management and coordination activities. The legislation would give the the FCC and the NTIA $10 million over the next two fiscal years.
Regulatory proposals in the U.S. like broadband reclassification and the National Broadband Plan have drawn significant interest from other countries, said Philip Verveer, U.S. coordinator for international communications and information policy, in an interview Monday. But the outcome of the reclassification proposal isn’t expected to cause the U.S. government to amend its international policy recommendation on communications issues, he said.
Senate negotiators continue “intense” negotiations on a comprehensive cybersecurity overhaul measure, but there’s no news on whether the Department of Homeland Security or the Commerce Department will lead the nation’s cybersecurity defenses, said sources. The Senate has been wrestling with multiple cybersecurity bills this session, notably S-773 sponsored by Sen. Jay Rockefeller, D-W.Va., and S-3480, sponsored by Sen. Joe Lieberman, I-Conn. (WID July 12 p1). A major difference is that Rockefeller’s bill would list Commerce as the lead cybersecurity agency and Lieberman’s would tap Homeland Security.
Congress has been laggardly in not bringing back tax certificates that once were used by companies selling media assets to minorities, FCC Commissioner Robert McDowell said Monday. “I do not understand why the 111th Congress has not passed legislation to reinstate” a revamped and improved certificate, he told a Minority Media and Telecommunications Council (MMTC) conference. “This seems like a no-brainer.” McDowell and colleagues Meredith Baker and Mignon Baker agreed on the panel that access to capital is the biggest hurdle faced by minorities desiring to enter the media business.
Further broadband deployment should encourage economic growth for minorities but there are important steps that must be taken first, trade-group executives said Monday. Speaking to the Minority Media and Telecommunications Council conference, NAB President Gordon Smith called for the reinstatement of the minority tax certificate, also sought there by FCC members. (See separate report in this issue.) “We have to increase diversity of ownership by restoring the tax certificate that was available to the minority community,” said Smith. “We should have amended, not ended the minority tax certificate.”
Consumer protections for California phone customers have dwindled since the Public Utilities Commission deregulated phone rates in 2006 and adopted a “hands-off” approach to telecom, the state Senate Office of Oversight and Outcomes said. In a report that consumer advocates praised, the nonpartisan office said Friday the commission “has consistently failed” to give consumers “basic information” that would arm them against fraud and encourage informed choices in picking phone carriers. State law mandates that the commission guarantee “just and reasonable” utility rates, but the regulator, “in effect, no longer tracks phone rate increases at all,” the office said. It was created in 2008 to give senators nonpartisan opinions on government performance.