Ariz. House Energy, Utilities & Technology Committee opens hearings today (Feb. 21) on bill (HB-2625) that would more than quadruple state E911 excise tax on wireless mobile phone service. Bill also would raise E911 taxes on wireline residential and business services to fund E911 system upgrades to accommodate new technologies and federal mandates, but those increases aren’t as much as on wireless. Wireless E911 tax would rise to 47 cents monthly per number from 10 cents, on wireline residential to 20 cents from 16 cents and on wireline business to 50 cents from 42 cents. Because it’s tax bill, it also will have to be reviewed by Ways & Means Committee if it passes utilities panel.
Head of new cybercrime unit in Mich. State Police, which began its first investigations Fri., said Internet- and computer- based crime was growing so fast his unit already faced 6-month backlog of cases. Unit commander Lt. Brian Albright said he was “not afraid of ever losing business.” New unit’s members, which include FBI and Drug Enforcement Administration investigators, have been trained to probe any crimes involving computers or computer networks such as Internet, including fraud, cyberstalking, illegal gambling, child pornography, child predation, drug trafficking, money laundering. Members received training at Eastern Mich. U. School of Cybercrime Investigation, officials said. Some local police agencies, such as in Monroe, Oakland and Wayne counties, have their own cybercrime units, but state unit will provide forensic and investigative assistance to such local outfits. Albright said most pressing challenges would include maintaining funding to keep up with fast-changing technology and ensuring that legislature kept state’s laws up to date as criminals exploited newer technologies. New State Police investigative unit is complement to High Tech Crimes Unit established by Mich. Attorney. Gen. Jennifer Granholm in 1999 to prosecute computer-related crimes. She said computer crimes were top type of Mich. crime in 2000, compared with only 10th rank in 1999.
Records of Bell companies in providing services to CLECs and RBOCs’ own customers could affect their efforts to gain regulatory relief on Capitol Hill, said Gerry Salemme, XO Communications senior vp-regulatory affairs. At XO news breakfast Tues., he said Bell company arguments for legislative relief on Sec. 271 requirements could be “undercut by their own performance” as service quality issues become more prominent in policy debates this year. At NARUC winter meeting that starts Sun. in Washington, Salemme said he also expected call for split in retail and wholesale operations of Bell companies to be hot topic. Recent bill in Md. House (HB-597) would impose structural separation regime similar to that ordered by Pa. PUC for Verizon. Structural separation is “a nice, easy, clear way that isn’t regulatory” to ensure Bell companies meet market-opening requirements under Telecom Act, he said. Salemme said he expected talk at NARUC meeting to turn to retail/wholesale split as possible “model.” He stressed importance of both Congress and FCC focusing on enforcement “to make sure the Bell companies and ILECs feet are held to the fire” when it comes to meeting Telecom Act commitments, he said. “We need to have rules enforced and penalties have to be strong and harsh enough that it’s not just a cost of doing business,” Salemme said. Asked about FCC Chmn. Powell’s recent statement that deregulation shouldn’t be “dessert” that’s given only after full competition, he said he didn’t interpret that to mean that FCC would alter review process for Sec. 271 applications. He said he didn’t see any signs that Commission would be “lowering the bar” for how applications were evaluated. Meanwhile, he said XO had been focusing on putting in place its own DSL access multiplexers (DSLAMs) to provide its own DSL service with providers such as Northpoint filing for bankruptcy, he said. Asked whether XO would be interested in buying such financially troubled DSL providers, he said: “We always look at everyone.”
Fla. PSC proposed fining 8 local exchange resellers total of $95,000 for failing to provide agency with access to company records. Companies have until March 12 to respond. PSC said companies that failed to reply could lose their local exchange service authority. PSC proposed fining TotalTel USA $25,000 because this was 2nd offense. It proposed fines of $10,000 each against Broward Business Services, which does business as Festival Telephone and Communication Service Centers, and against CFT Inc., Hayes Telecom Services, Quintelco, Teleglobe Business Solutions, World Access Communications and World Telecom Services.
Ind. House passed bill (HB-1924) to give Ind. Utility Regulatory Commission (IURC) authority to review and approve utility mergers. Bill passed House 61-37 Mon., but Ind. legislative observers predicted it would have tougher time in Republican-controlled Senate, seen as generally more receptive to business interests such as utilities opposed to bill. Measure, which in part was legislature’s reaction to court-decreed IURC impotence during Ameritech-SBC merger of 1999, passed House with all Democrats and some Republicans in support. Meanwhile, related bill (HB-1181) to give IURC power to directly fine utilities for violating IURC regulations, which grew out of Ameritech service quality crisis of 2000, cleared House committee process Mon. with major amendment. Bill sent to House floor was amended to cap IURC fines at $2.5 million monthly rather than previous cap of 3% of offending utility’s annual revenues. If bill passes House as expected, utilities have vowed to lobby Senate heavily to further weaken or kill measure. Under current law, IURC must file state court lawsuit through county prosecutor for utility fines.
It would take estimated 1,000 hours to scan one station’s public inspection files so they could be placed on Web, according to FCC filing by STC Bcstg., which owns 11 stations. Responding to Commission rulemaking on public interest obligations (MM 00- 168), STC also said it would cost at least $8,000 to create Web site and $125 extra per month to store that much information on server. Public benefits of that spending would be “trivial,” STC said. State broadcast associations, in joint filing in rulemaking (CD Feb 20 p4), agreed benefits would be minimal and repeated charge that proposed new standardized form would violate Administrative Procedure Act as well as First Amendment. Broadcasters said there was “no evidence that broadcasters are not meeting” their public interest obligations already.
Ericsson plans to deliver its first GSM 800 MHz systems in 2nd half of year, with offerings for GSM, General Packet Radio Service and Enhanced Data for Global Evolution. Introduction will allow operator in any frequency band to introduce GSM-based services, Ericsson said. Ericsson said Canada’s Rogers, AT&T Wireless, Mexico’s Telcel and Bolivia’s Entel Movil have previously announced plans to use Ericsson’s GSM/GPRS networks.
Richard Klein, ex-Verizon, named vp-advanced development, Bluesocket… Appointments at Telia: Marianne Nivert promoted to permanent pres.-CEO; Bo Jacobsson, exec. vp-CFO; Kenneth Karlberg, exec. vp-Telia AB and head of Telia Mobile Business; Lars H?renstam assigned responsibility for corp. development and human resources; Anders Gylder to lead Telia Sweden; Jan Johansson, Telia Networks; Michael Kongstad, corp. communications; Eva Lindqvist Telia Equity; Jan Rudberg,new business; Lars Rydin, Telia International Carrier business area; Indra ?sander, Telia Internet Services business area… Caroline Beck, ex-Intertainer, named pres.-CEO, Mixed Signals Technologies… Promotions at ACT Teleconferencing: David Holden to regional managing dir.-Europe/Middle East/Africa; Thierry Bignet to dir.-global business development… Michael Neuman, ex- Bell ExpressVu, named pres., Teleglobe Europe, Middle East, Africa… John Fluke, Fluke Capital Mgmt., appointed to Aerospace Hardware Exchange board… Otto Gecser resigns as chief mktg. and Internet officer, Matav… Brian Rogers named to Alaska Communications Systems board and its audit committee… Philippe Billet, ex-Dell France, appointed gen. mgr.-PeoplePC France… Patricia Marciano promoted to dir.-Web strategy, Cox Communications… Alan Weintraub, ex-WLS-TV Chicago, named group dir.-mkt. development, Clear Channel Communications Clear Results Mktg. Group… Dennis FitzSimons, Tribune Co., will keynote TV Bureau of Advertising convention April 23 in Las Vegas… Douglas Gaston advanced to vp-deputy gen. counsel, Comcast… Ronald Reising, ex-Ameritech, named CFO, Focal Communications, succeeding Joseph Beatty, retiring… Changes at Accelerated Networks: Michael Hogan, ex-3D Systems, named vp-CFO, replacing Fred Boyer, resigning; Benjamin DiLello, principal, Regent Pacific Group, named vp-worldwide sales and mktg… William D'Agostino, ex-Sprint PCS, appointed pres.-COO, Mericom… Robert Knowling, ex-Covad, becomes chmn.-CEO, Internet Access Technologies… Charles Stormon, ex-Mitre, named chief technology officer, Coherent Networks… Nilson Soares, ex-Intercom, appointed gen. mgr.-Comsat Brasil.
N.C. Utilities Commission (NCUC) awarded Telcordia Technologies contract to administer 1,000-block number pooling in state. Pooling is to begin in 704 (Charlotte) area code by Sept. 15 and will be extended later to include 980 code. NCUC said contest was close but Telcordia edged out competitor NeuStar because it offered local carriers somewhat better pooling administration system. NCUC directed Telcordia and local carriers to negotiate cost recovery contract to run until FCC issues national pooling-practices order. NCUC excluded 919 (Raleigh) code from pooling program because it was too close to exhaustion and required relief.
Alltel completed sale of 20 PCS licenses to Verizon Wireless, terms not disclosed. Transaction, which involves markets in 6 states, had been part of series of wireless deals that major carriers worked out before start of the FCC’s C-block PCS auction, in which Verizon Wireless won most licenses. Ten MHz licenses in Alltel deal, first announced in Nov. (CD Nov 13 p7), cover more than 11.4 million potential customers. Verizon Wireless said transaction will increase its footprint by about 2 million pops. Markets covered include Atlanta, Kansas City, Cleveland.