Chmn. Powell has begun to circulate for a vote 2 items that take on intercarrier compensation (IC) reform, including a report and order that will address conflicts between wireless carriers and rural ILECs on termination rates, we've learned. The other item is a further notice of proposed rulemaking that sends out for comment proposals for revising the IC regime, including the controversial plan proposed by the Intercarrier Compensation Forum (ICF).
Howard Buskirk
Howard Buskirk, Executive Senior Editor, joined Warren Communications News in 2004, after covering Capitol Hill for Telecommunications Reports. He has covered Washington since 1993 and was formerly executive editor at Energy Business Watch, editor at Gas Daily and managing editor at Natural Gas Week. Previous to that, he was a staff reporter for the Atlanta Journal-Constitution and the Greenville News. Follow Buskirk on Twitter: @hbuskirk
Wireless carriers are likely to ask the FCC to rethink its anti-collusion auction rules, which cut off many business contacts between carriers in the period between the filing of short forms and the actual auction, following upcoming Auction 58. The market implications could be major. For example, sources said the current quiet period complicates any move by Verizon Wireless to make a play for Sprint, since both companies are participating with partners in the key PCS auction, which is scheduled to begin Jan. 26.
Philadelphia has accused Nextel and Cingular of potentially interfering with police and fire radios that operate in the 800 MHz band. The city released a report by RCC Consulting that found 56 sites where wireless phones may be interfering with emergency communications in the city’s recently installed $54 million digital radio system. The Motorola-built system has experienced a number of communications glitches, a subject of some local press reports. RCC said interference was the most severe near Philadelphia International Airport, along Interstate 95, as well in sections of South Philadelphia and Grays Ferry. One area of controversy has been that RCC, at the city’s urging, has tested for noise floor. Carriers urge testing instead based on performance degradation. “We are working cooperatively with the city,” a spokeswoman for Nextel said Wed.: “We began testing earlier this month. We will continue testing as we have in other markets that have experienced interference… What’s going on in Philadelphia kind of gets to the heart of why we need a comprehensive solution” like the 800 MHz rebanding initiative. City officials have blamed the carriers. Joseph James, the city’s deputy comr. for public property, told the Philadelphia Inquirer that Nextel disagrees with conclusions in the RCC report while Cingular officials “want to ignore this and hope the problem goes away.”
Chmn. Powell formally asked the NTIA on Wed. to begin the process that will lead to an auction of 90 MHz of spectrum for advanced wireless services (AWS) in June 2006. Powell also announced the auction of other spectrum at 1432- 1435 MHz in July or Aug. of the same year. Wireless carriers have called on the FCC to act quickly to initiate the AWS auction and were pleased with the Powell letter.
Wireless Bureau Chief John Muleta last week called in the 5 national carriers, Tier 2 and Tier 3 carriers, as well as the public safety community, for an unusual industry-wide meeting focusing on E911 compliance and the ability of carriers to meet fast-approaching deadlines, sources told us Tues.
The CTIA has decided not to challenge, except on very limited grounds, an FCC order approved in Aug. imposing new outage reporting requirements on wireless carriers. Carriers were concerned about the feasibility of the FCC’s reporting mandate, but sources said they recognized that the FCC was not likely to reverse course. Instead, CTIA filed a petition for reconsideration last week challenging whether the order should exempt communications to additional types of facilities tied to national security beyond airports.
President Bush signed legislation (HR 5419) on Dec. 23 that created a spectrum relocation trust fund that will guarantee that auction revenue can easily be used to move Dept. of Defense and other govt. users off the 1710-1755 MHz parts of the band. The legislation also provides funding for state and local govts. for wireless E911, and resolves accounting issues that had been causing some problems for the universal service fund (USF). Specifically on the last issue, the act provides a one-year exemption from the application of govt. accounting rules to USF programs, including E-rate. The next step on the spectrum trust fund is the transmittal of a letter from the FCC to NTIA asking it to start the process of clearing the spectrum. After the notification is sent, the govt. has 12 months to calculate costs and set a schedule for relocation and must notify the FCC 6 months before an auction.
The FCC late Wed. made significant changes to the 800 rebanding order. They included approving an order that had been circulating for a week (CD Dec 16 p8) providing $452 million in additional credits for the spectrum the carrier will turn in to the FCC under the plan. The next major move will be Nextel’s. The carrier must say by Feb. whether it accepts the order’s terms. Few doubt Nextel will accept.
T-Mobile, Western Wireless and Dobson called on the FCC to ask detailed questions about the Intercarrier Compensation Forum (ICF) plan before circulating a proposal to fix the intercarrier compensation regime. Wireless carrier sources said they expect pressure to grow in coming weeks as the FCC nears circulation of an order on the issue. The Wireline Bureau has predicted a vote on an intercarrier compensation item in mid-2005.
The FCC is poised to approve an order as early as this week delaying a Jan. 1 mandate for requiring that some radios be narrowband-ready, and making other changes to dates for narrowband rules. The FCC also appears on target to vote out an order sua sponte -- on its own initiative -- by tonight (Wed.) addressing Nextel’s request for changes to the FCC’s Aug. 800 MHz rebanding order.