With FCC overdue to act on reciprocal compensation, Bell companies and CLECs competed Wed. to present their positions to Commission and news media just in case agency schedules vote on issue at its Jan. 11 agenda meeting. If item is placed on next week’s agenda, all lobbying will have to stop tonight (Jan. 4) under agency’s “sunshine” rules. FCC hasn’t said whether it will take up reciprocal compensation at meeting, but it originally planned to vote on issue by year’s end and then deal with broader proceeding on intercarrier compensation soon afterward. “It’s ripe for decision,” industry source said.
FCC is considering proposed rulemaking that would regulate interactive TV (ITV) services carried by all cable operators, knowledgeable sources confirmed Tues. Proposed regulations would be likely to ban all cable systems offering interactive services from blocking ITV triggers from rival content providers, similar to ITV conditions that FTC recently imposed on AOL’s pending purchase of Time Warner (TW). But sources said FCC rules could go further than FTC merger conditions, prohibiting cable operators from favoring their own content by caching it on local servers or sending it at higher data speeds than content from unaffiliated providers. “I'm sure they're talking about all sorts of things,” said source who declined to be identified.
FCC told Congress in report Tues. it wouldn’t make recommendations on specific measures to facilitate provision of local signals to subscribers in rural markets by direct-to-home (DTH) satellite and multichannel video programming operators because licensing process hadn’t been completed and it would be premature to make recommendations before licensing. Under requirement of Rural Local Broadcast Signal Act, Commission must inform Congress of ways its licensing and authorizations have helped provide local signals to satellite TV subscribers in remote areas.
National Exchange Carrier Assn. (NECA) files revisions in its average schedule formulas that will result in combined increase of 2.49% in common line and traffic-sensitive settlements. Those “settlements” are like interstate access charges for small rate- of-return carriers that don’t conduct their own cost studies. NECA said new formulas would go into effect July 1 if FCC approved them.
Rep. Tauzin’s (R-La.) selection as next chmn. of House Commerce Committee was all but official Tues., well-placed sources told us, after House Rules Committee released long-rumored proposal to create expanded Financial Services Committee. New panel is expected to be headed by Rep. Oxley (R-O.), Tauzin’s rival to succeed former Commerce Committee Chmn. Bliley (R-Va.). Full House will vote today (Wed.) on committee changes, and Republican leadership will choose committee heads Thurs.
CompTel said it was considering legislative campaign to urge structural separation on Bell companies in return for broadband LATA freedom. “This is not a wild-eyed theory,” CompTel Pres. Russell Frisby said at Tues. news briefing. Think of it as “return to the MFJ era,” he said, referring to Modified Final Judgment that laid ground rules for 1984 AT&T divestiture. Frisby said trade association hadn’t decided whether to recommend separation idea to Congress but idea would be to follow what Pa. PUC had required of Verizon -- separation of retail and wholesale operations. In return, Bells’ retail units would receive permission to offer data services across LATA lines without gaining Sec. 271 approval from FCC, Frisby said: “My sense is there are some people on the Hill who would be interested.”
FCC was poised at our deadline to release proposed frequencies that carriers could use for new 3rd-generation (3G) services. Agency source said Commission already had approved notice of proposed rulemaking but hadn’t released it. White House had asked FCC to make proposal by end of year. Item is expected to look at several potential bands including 2 in 1700-MHz and 2400-MHz that NTIA also is looking at as part of President Clinton’s 3G initiative. Clinton urged FCC and NTIA to work with wireless industry to select frequencies as quickly as possible so U.S. wouldn’t lose its edge.
VSB/COFDM report sent to key broadcasters late Fri. included “some good news and some bad news” for both DTV modulation systems, we're told. Reports, based on field testing completed in mid-Dec., were said to have been adopted unanimously by technical groups, which include VSB critic Sinclair Bcst. “I think it was pretty well balanced,” one official familiar with report said. He discounted claim that report strongly supports VSB (CD Dec 29 p4). Technical groups preparing report have kept tight lid on results, with even steering committee members generally not told in advance, we're told. In letter of appreciation to technical group members, Project Chmn. Gary Chapman of LIN TV and Vice Chmn. Craig Dubow of Gannett said they're “confident that the process was inclusive, fair and scientifically sound,” but they admitted that “even these most comprehensive and authoritative tests cannot fully resolve all issues. Opinions may differ as to the precise implications of the data.” Steering Committee is to meet Jan. 10 to discuss results and submit reports to MSTV board. Then, series of meetings will lead up to joint session of NAB and MSTV boards Jan. 15 in Carlsbad, Cal. Broadcasters spent $2.1 million on testing of competing DTV modulation schemes, following what they acknowledged to be “stalemate” as result of dispute over benefits of each system. TV group CEO told us “the direction we take will be charted” at industry summit of station executives in Washington Jan. 11. But, he said, unless study shows COFDM with “an overwhelming preference” industry should proceed with VSB. Then, he said, “we will need to press the FCC very, very hard” for such things as digital must carry and TV networks for more digital programming.
Motorola said Fri. it will unveil its iRadio satellite car radio system at Consumer Electronics Show at Las Vegas Convention Center this week. New car radio system is one of many digital radios that companies are planning to compete with XM and Sirius Satellite Radio for customers, industry officials said. IRadio, developed by Motorola Telematics Unit is expected to offer satellite services and interact with Internet through digital cellular networks which are primarily used for voice calls. Company is hoping to integrate iRadio with satellite navigation systems and emergency service products that are standard in many cars and trucks. CES is being used to showcase prototype with hopes of attracting manufacturer of car audio products, firm said. Motorola believes “right company” could have products ready for introduction to marketplace in one year, spokesman said.
R/L DBS Co., formerly Continental Satellite Corp., received 36-month extension from FCC Thurs. to start alternative DBS service that has struggled to get off ground during past 4 years. R/L argued in request for extension that legal haggling, FCC delays and changes in market had made it difficult to raise money to launch satellite and meet milestones. Company said it has invested $30 million in DBS business, including $14 million toward design and construction of satellite. EchoStar, which opposed Commission action, questioned whether $14 million payment “constituted significant effort” toward building $250 million satellite. EchoStar also said $15 million went toward acquisition of Continental stock by Loral and R/L DBS hasn’t made additional progress toward arranging remaining financing for satellite. Under terms of its construction permit, R/L DBS originally was required to be in operation by Aug. 15, 1999. Commission said additional time will allow company opportunity to implement “innovative, regionally targeted” DBS service.