Federal Communications Commission (FCC)

IDT Winstar and Bell companies exchanged fire at FCC this week over terms of interconnection agreements to which RBOCs must be held for fixed wireless provider that has emerged from Chapter 11 protection. Last month, IDT completed acquisition of remaining stake in Winstar, giving it 100% ownership of company that filed for bankruptcy year ago. IDT Winstar filed emergency petition April 17 for declaratory ruling at FCC, citing “immediate threats” from Verizon and Qwest to deny or delay providing facilities. Winstar argued that Communications Act and FCC rules required those facilities and services to be furnished to company. But RBOCs countered that federal bankruptcy law required IDT Winstar to assume and cure past debt on contracts taken on by pre-Chapter 11 Winstar. Qwest told FCC this week: “IDT’s actions have been carefully orchestrated to migrate Old Winstar customers onto its purchased network under terms that disregard the bankruptcy laws, as well as Qwest’s tariff provisions and operational processes.” Meanwhile, General Services Administration (GSA) weighed in at Commission, contending uninterrupted service to federal customers provided by Winstar was “critical” and in some cases had national security implications.

NAB Fri. joined other appeals already filed in U.S. Appeals Court, D.C., seeking to overturn provisions of Bipartisan Campaign Reform Act of 2002, charging new law would “in good part criminalize core political speech.” Earlier appeal was filed by 27 plaintiffs -- led by bill’s principal opponent on Senate floor, Sen. McConnell (R-Ky.) -- who charged it “would radically alter, in a fundamental and unconstitutional fashion, the ways citizens, labor unions, trade associations [etc.] are permitted to participate in our nation’s democratic process.” Law goes into effect Nov. 6, following next fall’s elections.

Coalition of 38 national and state groups, including Consumers Union, Cal. Public Interest Research Group, Center for Digital Democracy (CDD), Mass. Consumer Coalition, Empire State Consumer Assn., Tex. Watch and Va. Citizens Consumer Assn., came out against proposed merger of AT&T Broadband and Comcast. Comments on $72 billion deal were due on at FCC Mon., replies May 14. Merger would combine first and 3rd largest cable companies in U.S. “A combined AT&T Comcast, the nation’s largest cable company, would have the power to continue raising prices, limit choice in programming, dictate technology standards and network architecture, and ignore customer service issues,” said Mark Cooper, dir. of research for Consumer Federation of America. Organizations argued that cable industry and FCC in past had believed erroneously that alternative technologies such as satellite and DSL would discipline cable’s market power. Groups said cable “still dominates” video and high-speed Internet service and has charged low price for digital video and high prices for cable modem, although each service costs “substantially the same.” They said efficiencies claimed by Comcast Pres. Brian Roberts in recent Senate hearing (CD April 24 p3) were “not likely to be passed on to consumers because of a lack of competition,” that open set-top box standard wouldn’t be advanced by merger and that open communications networks would suffer setback as result of deal. Merger would increase level of concentration in regional and national markets by 5 times DoJ threshold, they said.

Software Defined Radio (SDR) rulemaking at FCC is “step forward” in regulatory effort needed to “jump-start” nascent technology, Vanu Bose told Technology Advisory Council (TAC) at FCC Fri. Bose is pres. of Vanu Inc., start-up company developing SDR commercial applications. SDR involves radios that provide software control of modulation techniques, wideband or narrowband operation, communications security functions (such as hopping), waveform requirements. For example, SDR user devices and network equipment can be programmed dynamically in software to reconfigure characteristics for better performance, richer feature sets or advanced services. SDR technology is applicable across wireless industry in both military and commercial sectors, Bose said. With its ability to adapt spectrum dynamically, “I'd like to see spectrum become a commodity that is traded” rather than auctioned as property, he said: “Spectrum licensing needs to be less static.” FCC should consider making it possible to “sublicense” spectrum. “In this way spectrum is used as a function of demand, not regulation.” Bose envisioned commodity spectrum market with authorized traders to whom wireless providers would make real-time bids on small geographic blocks “to acquire spectrum for region and time required, for next 3 years or next 2 weeks,” he said. Edward Thomas, chief of FCC Office of Engineering & Technology (OET), said Commission should give technology closer look: “The time is ideal to start a public dialog on the implementation of software radio as it bears on spectrum management, and what is needed to get the technology rolling.” Bose defined 3 classes of SDR: (1) Modal SDR, where equipment has more than radio mode built in. An example is handset that can receive both CDMA and AMPS wireless calls. (2) Reconfigurable SDR equipment, where all signal processing is reconfigurable in software. Military has developed technology in Speakeasy II project in which equipment is reprogrammable to accommodate 10 military radio systems. Reconfigurable SDR equipment usually is reprogrammed by manufacturer, rather than user, Bose said. (3) Software radio uses only software for signal processing and can be changed dynamically by user or service provider. “Software radio takes advantage of Moore’s Law,” he said, referring to rapid development of computer processors. SDR already is practical for fixed wireless infrastructure, he said. Bose said his company had developed systems that used “commodity off-shelf processors” to lower costs. Today’s general purpose computer technology allows “signal processing of 50 analog [wireless] channels on a single processor,” he said. Discussion moved to cellular handsets, application that he said was 3-5 years away. Problems are higher costs compared with single-purpose ASIC processor used in conventional handsets and higher energy consumption and heat from powerful processor. Admitting SDR never can be as efficient as single purpose ASIC, Bose said its advantage became apparent when more than one radio mode was needed in handset. Today SDR can be more cost effective if handset is designed to handle 3 radio modes: “I expect the crossover point to be 2 modes.” Power consumption and poor battery life will be solved “in future” only with more efficient processors and improved battery technology, he said. Formed by OET under Federal Advisory Committee Act to advise Commission on technical issues, TAC periodically gathers diverse group of academics, scientists and chief technology officers of technology firms representing telecom, data networking, software, consumer electronics and amateur radio interests. Next scheduled meeting is June 12.

House Commerce Committee Chmn. Tauzin (R-La.), ranking Democrat Dingell (D-Mich.) and 50 co-sponsors unveiled bill Wed. that would direct FCC to delay upcoming 700 MHz auctions indefinitely, tying future timing to resolution of other thorny spectrum issues. Legislation would delay June 19 auction of upper and lower bands at 700 MHz, requiring FCC within one year to report to Congress on proposed rescheduling. Proposal outlines panoply of other spectrum proceedings that await resolution and would instruct FCC to not hold 700 MHz auction until there was plan to resolve 800 MHz interference issues for public safety. Backed by bipartisan bill, CTIA late Wed. filed application at FCC seeking full Commission review of Wireless Bureau decision earlier this month that kept June 19 date intact. Prospects for companion bill in Senate appeared to be somewhat less clear, although Sen. Brownback (R-Kan.) told reporters Wed. he might support similar bill if administrative actions failed.

House Govt. Reform National Security Subcommittee Chmn. Shays (R-Conn.) told govt. and military representatives at hearing Tues. that his panel “will do whatever it has to do to straighten out” public and private sector differences over spectrum allocation policy. Most testimony from first panel of military officers reiterated necessity of prioritizing Dept. of Defense (DoD) spectrum needs, while pledging to keep in mind needs of industry in deploying 3rd generation (3G) wireless services. Second panel, which included FCC and NTIA officials, said progress was being made in developing national spectrum policy, evidenced by increased interagency dialogue to address growing need for spectrum in public safety and commercial 3G arenas.

FCC Tues. rejected applications by Northpoint and Satellite Receivers to use satellite spectrum for new terrestrial-based broadband service, adopting rules that included auction for multichannel video distribution & data service (MVDDS) in 12.2-12.7 GHz band. Commission said MVDDS operators such as Northpoint could share 12 GHz band with DBS and nongeostationary satellite operators (NGSO) and fixed service satellite (FSS) operators on co-primary basis, provided they didn’t cause interference (CD April 18 p3). FCC also dismissed corresponding waiver requests in favor of new service rules to resolve complex technical and sharing issues.

NTIA is raising interference concerns over some parts of notice of proposed rulemaking (NPRM) issued by FCC in Oct. that would update sections of its Parts 2, 15 and 18 rules, including provisions that would modify emissions to limits on certain Part 15 devices above 2 GHz. In letter to Office of Engineering & Technology Chief Edmond Thomas, NTIA cited part of proposal that would increase allowable field strengths for radio frequency identification (RFID) rules. On RFID systems, proposal would harmonize U.S. rules with standards for such devices in Europe and Australia. NPRM sought comment on changes in power levels for RFID tags operating at 425-435 MHz, which NTIA said was within 420-450 MHz allocated on primary basis to federal govt. Military systems operating in that spectrum include radiolocation operations for aircraft and missile surveillance, early warning and fire control, said letter from Fredrick Wentland, acting associate administrator of NTIA’s Office of Spectrum Management. “The radiolocation radars in this band include ground, shipborne and airborne radars that are essential to the nation’s homeland defense,” Wentland wrote. NASA also uses band for telemetry and telecommand, he said. Citing preliminary NTIA analysis, he said power level changes in parameters for RFID tags “could result in interference to federal systems” and NTIA and federal agencies “cannot support the proposed rule changes.” In next 90 days, NTIA and agencies will complete studies and provide them to Commission. In NPRM, FCC said it agreed with Savi Technologies that proposed Part 15 changes would allow more advanced systems to operate at 433 MHz. In other areas: (1) NTIA objected to 11 dB increase in field strength limits for RFID tags in 13.11-13.41 MHz. It said 13.26-13.36 MHz was allocated to aeronautical mobile services, which are designated for safety-of-life communications. FAA uses that spectrum for communications in oceanic and remote areas. “The increase in field strength by 11 dB could severely reduce the distance that an aircraft can successfully communicate with a ground flight tracking system,” NTIA said. NTIA recommended use of another part of high frequency band that wouldn’t require increase in Part 15 emission limits in frequency band allocated for Aeronautical Mobile Services. NTIA said it needed 90 more days to complete studies in that area. (2) NTIA said it and other federal agencies also needed another 90 days to complete studies on protection of sensitive services and to identify continuing R&D projects above 38.6 GHz. FCC sought comment on need for changes in restricted bands above 38.6 GHz and whether there were Part 15 rules designed to protect sensitive service such as govt. operations that should be modified. Among govt. services operating in that spectrum are 13 bands used by NASA for space research and Earth exploration satellite service sensors for missions such as weather forecasting and global warming measurements, NTIA said.

Verizon Wireless asked U.S. Appeals Court, D.C., this week to establish expedited schedule for hearing its challenge to March 27 FCC order that returned 85% of NextWave re-auction deposits. Verizon told court that FCC didn’t oppose expedited schedule for briefing and arguments. Earlier this month, Verizon Wireless filed suit in U.S. Court of Federal Claims to obtain remaining deposit from re-auction and seek ruling that auction “contract” for disputed licenses was void (CD April 9 p1). Separate challenge also was filed at D.C. Circuit over Commission order. Last month, FCC returned 85% of deposits to re-auction winners but concluded winning bidders should continue for now to be held to nearly $16 billion auction obligations until Supreme Court review is finalized (CD March 28 p1). Verizon Wireless told D.C. Circuit that agency refused to return all of carrier’s down payment and kept it obligated to pay “on 10 days’ notice” $8.4 billion for licenses if Commission eventually reacquires them. Filing said: “The order is wrong under fundamental principles of contract law, and it irreparably injures Verizon Wireless.” Carrier told court that “the Commission’s assertion that Verizon Wireless remains on the hook to pay this enormous sum on short notice has led 2 major credit- rating agencies to revise from ’stable’ to ‘negative’ their credit outlook for Verizon Communications.” Credit rating agencies attribute Verizon Wireless’s debt to Verizon, which co-owns Verizon Wireless in joint venture with Vodafone. Verizon Wireless told court that its agreement to participate in re-auction of NextWave licenses meant it took on risk that it might have to surrender licenses if D.C. Circuit issued ruling that returned them to NextWave, which occurred in June and is now being appealed to Supreme Court by FCC. But Verizon Wireless said it “did not accept the risks that the FCC now seeks to impose on it -- that if this court’s decision in the pending litigation made the licenses unavailable, the FCC would nonetheless compel Verizon Wireless for years to bear a contingent liability to pay more than $8 billion on 10 days’ notice if and when the FCC succeeds in reclaiming the licenses.” Verizon said it didn’t accept risk that it would bear such burdens “for an indefinite period without any assurance that it would ever receive the licenses that it won at auction.” Briefing schedule proposed by Verizon Wireless would set June 10 deadline for it to file brief and July 24 date for FCC. Final briefs would be due Aug. 30.

National Communications System (NCS) approved contract award to VoiceStream Wireless to provide priority access service for Washington and N.Y. metro areas. Approval had been expected since FCC granted VoiceStream temporary waiver earlier this month of its wireless priority access service (PAS) rules for GSM-based system that will provide national security and emergency personnel (NS/EP) access to wireless networks during emergencies. VoiceStream said it expected PAS system to be operational within 60 days. DynCorp, systems integration contractor for NCS’s wireline Govt. Emergency Telecom Service (GETS), awarded contract to VoiceStream. Carrier said agreement allowed its handsets to be provided by govt. to NS/EP users at federal, state and local level. Percentage of NS/EP users on wireless network compared with network’s customer base is expected to be less than 0.1%, VoiceStream said. It hasn’t attached dollar figure to contract, to which 5,000 users will have access in both cities on subscription basis, spokeswoman said. NCS Deputy Mgr. Brent Greene said agency would continue to work with VoiceStream and other wireless carriers toward national solution to wireless NS/EP communications by end of year. He said system would “enable us to balance national security and emergency preparedness needs while minimizing the impact on consumer access to the same wireless infrastructures.” FCC in 2000 issued rules on how NS/EP users could gain access in emergencies to next available wireless channel to originate call without preempting calls already in progress. Commission didn’t require carriers to provide PAS but created uniform operating protocols.