Federal Communications Commission (FCC)

FCC International Bureau Chief Donald Abelson expressed concerns about Chinese govt.’s raising settlement rates for international calls. “This is just another vain attempt at stopping what will be inevitable -- that is, the cost of connectivity should go down,” Abelson said at news conference Fri. Noting progressive stance that China had taken in past on IP telephony, he said that was “exactly the kind of policy I thought that we were going to see from China going on in the future. This particular action… I am surprised by it.”

Parents TV Council applauded call by FCC Comr. Copps for review of Commission’s indecency standards for radio and TV broadcasters (CD Nov 22 p1). “It has become clear that the Federal Communications Commission needs to transform itself from a lethargic, passive body into one that can address the needs of families and seriously engage in the effort to clean up public broadcasting,” PTC Pres. Brent Bozell said.

Verizon asked federal court to block new Wash. state telecom consumer privacy rules on ground they unconstitutionally interfered with its commercial free speech rights to communicate with its own customers. Verizon, state’s 2nd largest incumbent telco, asked U.S. Dist. Court, Seattle, for injunction to stay Jan. 1 effective date of rules adopted Nov. 7 by Wash. Utilities & Transportation Commission (WUTC) pending outcome of its lawsuit. Verizon said state’s rules also conflicted with FCC privacy policy adopted in July because state adopted opt-in policy, which holds that customer proprietary network information (CPNI) such as call detail data can’t be used for internal marketing purposes without customer’s prior consent. FCC adopted opt- out approach under which telecom carriers can use CPNI for internal marketing unless customer explicitly forbids such use. WUTC in its ruling said stricter opt-in standard was needed to prevent privacy invasions from data mining and consumer profiling that was based on very sensitive records of who customer had called. Agency said its opt-in rule represented fair balance between privacy interests of customers and business needs of carriers. Verizon told Judge Barbara Rothstein that opt-in approach to call detail data would make it unduly difficult to market new products and services to its 950,000 customers in Wash. Verizon said many customers were interested in information about services compatible with their calling patterns but few would bother to spend time and effort needed to opt in to CPNI access. Carrier said opt-out approach allowed those with privacy concerns to protect themselves. When FCC adopted its opt-out privacy policy in July on a federal court remand, it allowed states to adopt rules that might be more restrictive, reserving right of review. Verizon has asked FCC to reconsider that provision; request is pending.

Broadcasters and cable operators appear to have most to fear from tentative agenda announced by Sen. McCain (R- Ariz.), who will become Senate Commerce Committee Chmn. in next term of Congress (CD Nov 22 p1). He said committee would “assess whether broadcasters are meeting their public interest obligations.” Commerce Committee also will also examine cable rates.

European and other foreign-owned mobile companies seeking access to U.S. market “still face important barriers,” European Commission (EC) said in “Report on United States Barriers to Trade and Investment” released Wed. It said in spite of commitments U.S. made in World Trade Organization (WTO) pursuant to GATS Basic Telecom negotiations, mobile service sector still faced investment restrictions, lengthy and burdensome proceedings, “protectionist attitudes” in certain congressional circles and lack of access to frequencies for 3G services.

Aviation officials and regulators raised concerns Wed. that FCC rules could allow ultrawideband (UWB) devices to hamper critical avionics systems before potential interference was fully evaluated. FCC order in Feb. set what agency called “ultraconservative” emission limits for UWB. Based on concerns UWB could interfere with safety-of-life and other critical aviation systems, FAA began testing devices last week at its Technical Center in Atlantic City (CD Nov 18 p5). But Sally Frodge of Transportation Dept.’s Office of the Secy., also said at World Airline Entertainment Assn. (WAEA) conference in Washington that continuing resolution that expires in Jan. could tie up funding needed for follow- on evaluation of those test results.

Airline officials and technology developers urged federal regulators Tues. to back certification guidelines for how wireless devices could be used aboard aircraft without causing interference. FAA’s John Dimtroff said at World Airline Entertainment Assn. (WAEA) conference in Washington Tues. that proposal was pending to set up special advisory committee on safety of personal electronics devices on aircraft and possible testing standards. Because of funding considerations, FAA would have ultimate sign-off on such decision, but it is one that has backing of U.S. airlines and technology developers such as Intel.

Federal Aviation Administration (FAA) began testing ultra-wideband (UWB) devices last week in effort to make initial assessment by year-end on potential impact of new technology on avionics systems. FAA, along with Depts. of Transportation, Defense and NASA, is among agencies that expressed concerns about potential interference of UWB in safety-of-life frequencies. “We do anticipate that there will be some problems based on what we know about UWB types of devices,” FAA Program Mgr. George Sakai said: “To what degree, we don’t know. This is why we needed to do some actual testing.”

Dynamics of the FCC are likely to change now that Jonathan Adelstein was confirmed by the Senate late Thurs. for the open Democratic seat on the Commission, sources tell us. Those who know Adelstein were reluctant to predict direction the FCC would take now that it once again had full complement of 5 members. Many expect Adelstein usually to vote with Comr. Copps, Commission’s other Democrat. But others said he would think independently and wouldn’t necessarily follow form on every issue. Even rural advocates said Adelstein, touted for his concerns of rural issues, could break from rural lobby on some issues.

Advocates for minority and low-income groups are researching ways to challenge alleged electronic redlining by cable and telecom operators when they roll out new advanced services such as high-speed Internet in low-income and minority neighborhoods, sources said. Minority Media & Telecom Council (MMTC) will take up issue at March board meeting and will decide whether to mount FCC or court challenge, Exec. Dir. David Honig told us. Civil Rights Forum on Communications Policy (CRFCP) said it was actively seeking ways to raise $25,000-$35,000 to conduct study of electronic redlining in Boston, D.C., N.Y.