Five major Hollywood studios have all but signed off on proposed Memorandum of Understanding (MoU) that would endorse 5C DTV copy protection technology standard, Disney said. Preston Padden, Disney exec. vp-govt. relations, told us that proposed agreement would be “substantially similar” to licensing pact that Sony Pictures Entertainment and Warner Bros. signed with leading TV set makers and software developers represented by 5C group earlier this week (CD July 18 p2). But, he said, 5-studio agreement also would include provision of watermark detection to control Internet retransmission of broadcast programming, clearing away main hurdle to copy protection pacts among studios and broadcast networks. “This would get all 7 studios in alignment,” he said.
CTIA released results of study Wed. of wireless network performance conducted by independent research firm Telephia. CTIA Pres. Tom Wheeler said first-of-its-kind study would be updated every 6 months to provide benchmark of wireless infrastructure performance and would be shared with FCC. Telephia Pres. John Oyler told reporters that research found wireless customers in “core” urban markets could place, hold and complete wireless calls 95.8% of time. In suburban areas studied, percentage was slightly lower -- 95.7%, he said. Study examined markets that represented 15% of U.S. population (40 million people). Research, which was compiled at behest of CTIA, examined mix of markets between Nov. 1999 and April 2001, with call durations of 2 min., including calls made during rush hours and on secondary roadways. Of calls examined, calls were dropped 4.2% of time in suburban areas and 2.4% in urban core areas, Oyler said. Similarly, calls were blocked 1.4% of time in core areas, versus 2.4% in suburban areas. Wheeler said positive network performance documented by Telephia indicated that industry “has put its money where its mouth is” on service quality. In last year, CTIA estimates that industry collectively has spent $18 billion to improve and upgrade its networks. Figures in study are particularly positive in light of rapid industry growth, including 24% increase in subscribers in last year to current 118 million, Wheeler said. “Clearly this shows that that $18 billion is working and competition is working,” he said at press lunch. “The spectrum shortage can only have an impact on those numbers going forward,” he warned, reiterating group’s call for national spectrum plan and relaxation of spectrum caps. Report comes as service quality issues have gained higher profile both within industry and at FCC. At recent FCC meeting, Wireless Bureau Chief Tom Sugrue said his bureau had been working with Consumer Information Bureau on finding ways to place informal complaints on issues such as dropped calls into categories that are easier to track. He said number of complaints received by FCC didn’t seem to be disproportionate to subscriber increases but that consumer expectations for quality of service appeared to be increasing. Verizon Wireless CEO Dennis Strigl also said recently that industry must pay more attention to service issues to stave off regulatory intervention (CD June 5 p1). Wheeler said report sends message to FCC that industry is attentive to service quality issues and is willing to provide benchmark that can compare different aspects from one period to another. Telephia study monitored total of 200,000 phone calls, running through drive tests in each market twice, Oyler said. Measurement categories included: (1) Audio quality of 2-way conversations. (2) Dropped calls, which covers whether call or not is completed. (3) Blocked calls, addressing ability of user to get open line to place call. (4) Coverage, defined as ability of phone to detect presence of network and place and receive calls.
NARUC’s Telecom Committee adopted 3 of 4 policy resolutions endorsed by staff subcommittee earlier this week, including affirming staffers’ unanimous call for NARUC to file court appeal of FCC’s remand order on Internet-bound local traffic (CD July 17). At meeting in Seattle, NARUC General Counsel Brad Ramsey Tues. said notice of appeal actually was filed Mon. to meet deadline at U.S. Appeals Court, D.C. “If you don’t approve this resolution, I can withdraw the appeal,” he said, but telecom panel voted unanimously in favor of appeal, saying judicial review was needed to ensure that cost assignment and responsibility for cost recovery were “jurisdictionally consistent” and to ensure state authority on Internet-related traffic. States believe remand order may improperly preempt state authority over several aspects of interconnection agreements and assign to state jurisdiction cost recovery for facilities that are federally regulated. Telecom panel also adopted slightly amended version of resolution on pending FCC rulemaking on unified intercarrier compensation regime. Resolution still opposes any unified intercarrier compensation plan that would preempt state interconnection policies. It urged that any unified system built around bill-and- keep be referred to Federal-State Joint Board on Separations for consideration of jurisdictional impacts and, in added amendment, be referred also to Joint Board on Universal Service for review of universal service implications. Telecom panel also adopted without change resolution that supported extending for another 2 years charter of N. American Numbering Council, which is due to expire in Oct. Fourth resolution from staffers was withdrawn for further work and possible reintroduction at NARUC’s annual convention this fall in Philadelphia. That resolution would have urged FCC, in its pending further rulemaking on numbering optimization, to make sure it preserved dialing plan preferences of each state’s commission. Also Tues, NARUC’s Consumer Affairs Committee approved resolution urging FCC, as it conducted its comprehensive reorganization under leadership of new Chmn. Powell, to “make a strong and effective cooperative relationship with state commissions” one of its top reorganization goals, particularly on consumer protection in telecom as industry evolved to competitive marketplace. Resolution applauded Powell’s expressed commitment to telecom consumer protection and his efforts to work with NARUC and individual states on consumer protection regulation, education and enforcement.
Consumer groups asked FCC to investigate whether long distance companies were passing savings to consumers that they gained through access charge reductions mandated by CALLS reform plan. Under CALLS plan, consumers now pay higher subscriber lines charges to local companies but were supposed to get lower long distance rates in return. Consumers Union and Consumer Federation of America sent letter to FCC Chmn. Powell Tues. charging that AT&T, for example, raised rates for basic service as much as 11% July 1, even though it experienced reductions in access payments: “In a functioning market, consumers would see savings as firms compete. Instead, long distance companies like AT&T are lining one pocket with a regulatory cost reduction and lining another by raising consumers’ rates.” Letter said “it appears that the vast majority of consumers are being denied the benefits they were promised when the CALLS plan was approved.” It’s also apparent that “competition in long distance is not strong enough to translate lower costs into lower prices,” letter concluded. In answer to long distance companies’ arguments that they were passing through savings with introduction of new calling plans and features, Consumers Union spokesman said reductions should be clearly evident in current rates paid by consumers. “It should be easy for consumers to see the savings” without having to change calling plans, he said. In addition, there’s no evidence of “dramatic reductions” in any calling plans and consumers paying basic rates are benefiting the least, he said. AT&T responded that access reductions enabled companies to design lower cost calling plans better suited to consumers’ needs. “The long distance market is hotly competitive and consumers know it,” AT&T said. “If they don’t like one company’s rates they can easily switch companies or calling plans and they readily do so.”
Satellite industry considers itself big winner, for now, in FCC 2 GHz band order that licensed 8 MSS operators in spectrum coveted by cellular industry and New ICO for terrestrial use (CD July 18 p11). However, most agree Commission delay in deciding more-complex issue of how terrestrial and satellite companies might use spectrum still is “battle that must be fought,” satellite attorney said. Each of geostationary and nongeostationary systems will be authorized to operate in equal 3.5 MHz segments in 1990-2025 MHz and 2165-2200 MHz. Bureau said it was delaying full implementation of 2 GHz MSS licensing order with regard to an incremental 0.38 megahertz of spectrum per licensee in each band until it resolved various pending proposals. Remaining spectrum may be auctioned or given to cellular companies in future rulemaking, which industry observers believe could come in companion order with 3G spectrum allocation. Meanwhile, CTIA Pres. Tom Wheeler applauded FCC’s decision to not act, for now, on request by New ICO to develop terrestrial spectrum using bands allocated to MSS.
U.S. GPS Industry Council is asking FCC to appoint independent band manager to oversee deployment of ultra-wideband (UWB) devices. In ex parte filing, group proposed draft rule that also would cover introduction of UWB devices. Rules proposed by council would: (1) License UWB ground penetrating radars operating below 1 GHz, subject to certain conditions. (Notice of proposed rulemaking approved by FCC last year weighed allowing operation of UWB technology on unlicensed basis under Part 15 rules.) (2) Unlicensed deployment of UWB devices in 6 to 12 GHz. (3) Creation of private sector-run and financed consortium that would be engaged in UWB deployment, which band manager would head. (4) Naming of band manager for UWB, who would promote competition among UWB device providers, promote development and use of technology, manage noise floor of affected frequencies and settle interference disputes involving existing users. This would free FCC from dispute resolution responsibilities, although it would remain “final arbiter of these issues.” (5) Launch of study to determine baseline noise floor level in affected spectrum, “subject to Commission-appointed peer group review and comment on study results.” Filing by council said it “believes adoption of these proposed rules by the Commission would facilitate a speedy introduction of UWB devices while limiting the potential for disruption of existing services.” Raul Rodriguez, counsel to GPS Industry Council, said licensing of UWB ground penetrating radars below 1 GHz wouldn’t likely have significant impact because these devices are marketed to public safety agencies that are accustomed to seeking FCC licenses for their radio services. Band manager concept is not new one for Commission, which has employed such entities in areas such as 700 MHz guardband auction. Point of this part of proposal is to put forth workable solution that will address interference concerns of existing spectrum users while still allowing technology to move forward, Rodriguez said. Use of band manager for unlicensed UWB devices in 6-12 GHz would provide entity that would manage noise flow to ensure that this technology “will not disrupt existing services,” he said. Proposal hasn’t been signed on to by UWB developers.
Minidebate over impact on localism of media consolidation heated up Wed., mainly in response to claim by network official that ABC affiliate WPLG (Ch. 9) Miami was preempting children’s educational programming for infomercials (CD July 18 p1). Post- Newsweek Stations Pres. Alan Frank said it was “unequivocally incorrect” that station ever preempted educational programming for infomercial and suggested network officials could be confused because station regularly ran programs out of pattern (on schedule different from network feed) “with the network’s blessing” to accommodate local news. However, network officials said WPLG consistently preempted 11:30 a.m. Doug show, which is FCC-approved educational show, during May sweeps to accommodate infomercials. Network said show wasn’t moved to different time. “They are confused,” Frank responded. Network plans to make FCC filing Mon. on local station preemptions, official said, detailing preemptions at WPLG and other stations. “There is no question that it is accurate” that WPLG preemptions were as claimed, he said: “We're one hundred percent sure.” Disney chief lobbyist Preston Padden said: “In this time period the network is broadcasting an educational program for children. WPLG is instead running a program-length commercial for hair restoration. They can call it a preemption or a non-clearance, but the effect on the public is the same.”
Verestar received special temporary authority from FCC for additional 120 days to operate earth stations at Brewster, Wash., in support of equipment and in-orbit tests of ICO F-2 satellite. Authorization gives Verestar time to verify performance of satellite network through ground segment operations.
FCC Chmn. Powell said Wed. he opposed legislation being drafted by Sen. Hollings (D-S.C.) to encourage diversity in media ownership (CD July 18 p1). Powell told reporters at African telecom conference he thought new newspaper ownership rules would have been out already if it weren’t for changeover of Commissioners. “I think it’s important [to review cross-ownership rules] because they recognize that the media landscape and the context changes consistently,” Powell said. He said he was trying to follow FCC’s cycle of biennial reviews of ownership rules, but that had been “complicated” by court interventions.
FCC Chmn. Powell expressed optimism about future of African digital technology at African telecom ministers’ telecom conference in Arlington, Va., Wed., but warned nations’ officials not to concentrate their efforts only on closing digital divide. “Like all slogans, the digital divide helps focus attention on a complex reality,” Powell said. “However, it is less useful in helping us find answers to those realities… It does not serve the developing world to view the problem as a race to parity with the developed world.” Since technology always is advancing, he said, it’s more important to focus on advancing at best pace possible and integrating technology with citizens. As technology becomes more widely available in Africa, “I worry that rather than bridge a divide, the gulf will widen as better-off communities advance at even faster rates,” he said. “Instead of running after the latest and greatest technology device, we ought to… foster the conditions necessary for innovation and the productive deployment of technology.” Powell emphasized development of infrastructure, procompetitive policies and advanced citizen education. “Simply owning shiny computers with Internet browsers” isn’t goal, he said: “Our children will need to understand the alphabet of technology… our schools and programs need to do more than train the next generation of clerical workers.”