Justice Dept.’s Telecom Task Force asked for input on how to improve its merger review process. Task force chief Donald Russell sent letter to 50 communications attorneys inviting them to March 1 private meeting to participate in “informal, off-the- record discussion.” Discussion topics listed in Jan. 10 letter: (1) Do initial task force investigations lead to “success in efficiently distinguishing between transactions which raise substantial competitive concerns and those which do not?” (2) How can task force best improve its “understanding of commercial or technological considerations relevant to our competitive analysis.” (3) How would attorneys compare task force merger review and processes with FTC, FCC, other sections of DoJ’s Antitrust Div., foreign antitrust agencies. (4) How could “second-request process be modified to promote the efficient and focused production of relevant information and documents.” Russell’s letter said those were just suggestions, and other issues can be raised at meeting. Russell said 2 moderators would help direct discussion: Verizon attorney John Thorne and Kevin Sullivan of King & Spaulding. Russell also encouraged attorneys to communicate with him directly, if they choose, by phone or e- mail. Letter went to Who’s Who of communications lawyers such as Richard Devlin of Sprint, James Rill of Howrey, Simon, Arnold & White, Mark Rosenblum of AT&T, Charles Rule of Covington & Burling, Michael Salsbury of WorldCom, Philip Verveer of Wilkie, Farr & Gallagher. Letter said all of them had worked for at least one client on important transaction reviewed by task force.
GSM Assn. reached agreement with TDMA wireless group Universal Wireless Communications Consortium (UWCC) to include TDMA interoperability with GSM as component of GSM Global Roaming Forum. Point of forum is to foster interoperability of GSM and non-GSM technologies with goal of intrastandard roaming among carriers. Groups said GSM and TDMA interoperability, through GSM/ANSI-136 Interoperability, has been under discussion since 1999. Agreement between 2 wireless groups brought development work under purview of roaming forum. Forum develops technical requirements for terminals, networking and commercial standards for services, billing and financial settlements.
FCC took steps at its meeting Thurs. to make it easier for public safety agencies to communicate with one another on emergency scenes, including setting rules for interoperability channels in 700 MHz public safety band. In unanimously approved report and order, agency adopted standard for interoperability channels as recommended by Public Safety National Coordination Committee (NCC) chaired by Kathleen Wallman. For general use channels in 24 MHz designated for public safety in 700 MHz band, FCC adopted notice of proposed rulemaking (NPRM) seeking comments on migration path to more efficient standard. But to encourage early use of 700 MHz, some of which still is occupied by analog broadcasters, order indicated Commission wouldn’t mandate use of that more efficient technology before 2006.
Since 9th U.S. Appeals Court, San Francisco, ruling classifying cable modem service as telecom service are “nonbinding dicta,” FCC is free to embrace Cox’s position that it’s pure information service devoid of telecom service component, Cox told Commission in reply comments in open access inquiry. Explaining recent decision to stop paying franchise fees on cable modem service to local govts. in 9th Circuit jurisdiction, Cox said court decision meant it had no choice but to suspend payment and collection of fees pending further clarification of issue by FCC. Recognizing its decision would have adverse financial impact on some local franchise authorities, company said it was in discussion with local govts. “in hopes of reaching a mutually satisfactory resolution.” Referring to criticism by National Assn. of Telecom Officers & Advisers (NATOA) that Cox was refusing to pay franchise fees mandated under Title 6 after declining to contribute to universal service fund and failing to secure necessary state or local certificates required under Sec. 253, company said it continued to pay cable franchise fees on all services that had been deemed Title 6 cable services. It would have continued to pay franchise fees on cable modem services in 9th Circuit jurisdiction states but for Portland decision, Cox said, pointing out it was paying such fees in other states. As for USTA’s charge that Cox hadn’t shown any intent to make payments to universal service fund despite concluding data service was telecom service, company said its telephone subsidiaries in 9th Circuit states paid “significant portion” of revenues into state and federal universal funds. “Far from ‘reasoning’ that its cable services are telecommunications services, as USTA claims,” Cox has “vigorously” and “repeatedly” disputed such suggestion, company said, and not until FCC determines that cable Internet service should be subject to Title 2 common carrier requirements can Cox comply with them.
Bidding in FCC’s C- and F-block PCS auction reached net of $14.93 billion Thurs., inching up from $14.57 billion Wed. Verizon Wireless had 103 high bids worth $6.2 billion, followed by Cingular Wireless-backed Salmon PCS with 62 for $2.9 billion and AT&T Wireless-backed Alaska Native Wireless with 47 for $2.5 billion. Dobson Communications subsidiary DCC PCS bid $960.8 million, VoiceStream $573.6 million, Cook Inlet $480.9 million. After 47 rounds, units of 3 largest wireless carriers continued to jockey for 3 N.Y.C. licenses. Verizon Wireless bid $1.6 billion for one license in that market, Alaska Native Wireless $1.12 billion for another and Salmon $1.1 billion for 3rd. Those licenses are fetching figures that are more than double those in next most competitive market, L.A., where DCC and Verizon are bidding closer to $500 million.
“Avoiding a Pearl Harbor in space” and deterring adversaries were among priorities Space Commission identified in report it released Jan. 11 in Washington. “The number of pagers and cellphones in this room speak to the importance” of protecting satellites, Adm. David Jeremiah (USN-Ret.) said at hearing. Gen. Ronald Fogelman (USAF-Ret.), who is commission member, said report outlining vulnerabilities of satellites including communications satellites was “nothing new.” William Graham, chmn. of National Security Research, said “any deliberate attack could produce similar or worse results” than near-total loss of communications for hours or days, as has happened in accidental failures. Robert Davis, pres. of R.V. Davis & Assoc., said commercial use of global positioning system (GPS) highlighted need to solve structural problems with Defense Dept. Among recommendations, commission members cited establishing Space Corps or new branch of military devoted to space. Gen. Howell Estes (USAF-Ret.) said if critical satellite had stopped transmitting when he led space command, “I wouldn’t have had a clue” what was wrong.
DirecTV and TiVo will formalize agreement for video-on-demand (VoD) within 60 days that will use portion of hard drive in current combination receiver, DirecTV Global Digital Media Pres. Lawrence Chapman said. Meanwhile, DirecTV/AOLTV product has been postponed until later this year, marking 2nd time service debut was delayed.
Seven states have requested more delegated authority from FCC to allow them to implement number conservation measures. FCC is seeking comments on requests of Ind., Minn., Mo., Okla., Tenn., Vt., W.Va. Comments are due Feb. 12, replies Feb. 28 (CC 96-98, 99-200).
U.S. Copyright Office started 6-month negotiation period for adjustment of royalty rates and terms for performance of copyrighted sound recordings by preexisting subscription services and satellite digital audio services. Negotiation period began Jan. 9 and those who want to participate must notify Copyright Office by Jan. 31.
EchoStar said it would raise rates for 2 of its top packages. Monthly fee for America’s Top 50 increased 10% to $21.99 and America’s Top 100 package $1 to $30.99. Rate for premium America’s Top 150 package will be unchanged. Company said it had to raise rates because some channels had increased prices up to 40%. New rates become effective Feb. 1.