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Telecom/IT Policy Highlights

Volume: 5.02
February 2005

Contents:
Overview
Policy / Legislative Activities
Regulatory Activities
Judicial Activities
Research / Reports
Items of Interest
Events
Newsletter Info
  • Overview

    The shortest month of the year was nonetheless full of serious policy analysis with respect to telecommunications and information technology. On Capitol Hill, where talk of telecommunications reform remains active, legislators considered the impact of change upon their specific constituencies. The Congressional Rural Caucus held a meeting to examine potential changes to the Universal Service Fund. The House Commerce Subcommittee on Telecommunications and the Internet held two hearings, one of which focused on the changes technology companies are undergoing due to the growth of IP-enabled services. The other hearing related to the digital TV transition, which now has a potential price tag thanks to a cost estimate in a new GAO report. The House Government Reform Committee also released its annual cybersecurity report cards measuring government agencies, noting slight improvement overall from the previous year.

    The FCC issued an important ruling that will only require cable providers to carry one digital broadcast channel per station. The decision not to require “multicasting” is likely to limit the growth potential of digital broadcasting. Additionally, a Federal appeals court is hearing a challenge to the FCC’s broadcast flag rule that would protect digital content from being copied and distributed. A ruling is expected before the rule goes into effect June 1, 2005.

    In Georgia, the General Assembly is considering a number of telecom/IT-related bills. A complete legislative update is available below.


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  • Policy / Legislative Activities

    Congressional Rural Caucus Holds Hearings on Telecommunications Reform
    02.02.05 – As Congress prepares to reevaluate and possibly update the Telecommunications Act of 1996, members of the Congressional Rural Caucus held a forum on the future of the Universal Service Fund (USF). The fund, which is assessed on wireless and wireline telephone bills alike, is used to pay rural telecommunications providers to offer basic telephone service to remote areas. The 140 members of the Rural Caucus are hoping that the Universal Service Fund will be expanded in any forthcoming telecommunications reform legislation. Caucus vice-chair Tom Osborne (R-NE) said that “improved access to broadband technology in rural areas is a critical issue that must be addressed.” Currently, USF funds cannot be used to pay for broadband access or wireless services.

    The Universal Service Fund is likely to be a contentious issue in Congress. House Commerce Committee Chairman Joe Barton (R-TX) has made statements skeptical of the fund’s effectiveness, even joking that the best way to solve the problem is to abolish the program. Senate Commerce Committee Chairman Ted Stevens (R-AK), however, is a strong supporter of the USF, having many constituents in remote parts of Alaska who have benefited from the fund. For more information on the Congressional Rural Caucus’ telecommunications task force, see
    [http://www.house.gov/johnpeterson/ruralcaucus/telecomtaskforce.htm].
    [Sources: The Wall Street Journal, Congressional Rural Caucus]

    Key Government Agencies Flunk Annual Cybersecurity Report Card
    02.16.05 – The Federal government received an overall grade of D+ on the fifth annual cybersecurity report card created by the House Committee on Government Reform. The committee evaluates Federal agencies on their ability to meet requirements established by the Federal Information Security Management Act (FISMA) of 2004. Several key agencies, including the Departments of Homeland Security, Energy, and Health and Human Services, received a grade of F. Most agencies, however, improved on their scores from the previous year. Government Reform Committee Chairman Tom Davis (R-VA) said that the report cards contain both good and bad news. “The 2004 FISMA grades indicate that agencies have made significant improvement in certifying and accrediting systems, annual testing, and security training, but significant challenges remain.” For information on the FISMA grades, go to [http://reform.house.gov/GovReform/News/DocumentSingle.aspx?DocumentID=6813].

    Cybersecurity has been an issue of concern on Capitol Hill recently. The Department of Homeland Security’s top cybersecurity official abruptly resigned in October after becoming the third person to hold the job in three years, raising questions about the agency’s ability to focus on cyberterrorism. Reps. Mac Thornberry (R-TX) and Zoe Lofgren (D-CA) have introduced legislation [H.R. 285] called the Department of Homeland Security Cybersecurity Enhancement Act of 2005 that would change the agency’s structure so as to focus the nation’s cybersecurity efforts under a new Assistant Secretary for Cybersecurity. The bill was first introduced last September, but it was overshadowed by the legislation implementing the recommendations of the 9/11 Commission. For text of the legislation, see [http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.285:].
    [Sources: House Government Reform Committee, Library of Congress]

    House, Senate Committees Emphasize Telecom Transitions
    02.28.05 – Actions taken in February by the House Committee on Energy and Commerce and the Senate Committee on Commerce, Science, and Transportation (the two main committees with jurisdiction over telecommunications/IT issues) demonstrate a focus on the future of telecommunications policy and the transition being spurred by technology. The Senate committee reorganized its structure by eliminating the subcommittee on communications, noting that it will take on communications issues at the full committee level. This will give committee chairman Ted Stevens (R-AK) more control in the debate over telecommunications reform. The House Committee has made no structural changes, but its Subcommittee on Telecommunications and the Internet held two hearings this month. The first was entitled “How Internet Protocol-enabled services are changing the face of communications: a view from technology companies,” featuring Testimony from major industry leaders such as Motorola, Siemens, and Qualcomm. See
    [http://energycommerce.house.gov/108/Hearings/02092005hearing1427/hearing.htm] for more information. The second hearing focused on the digital television transition and how technology will play a role in establishing a deadline for the change. See [http://energycommerce.house.gov/108/Hearings/02172005hearing1435/hearing.htm] for more information.
    [Sources: House Committee on Energy and Commerce, Senate Committee on Commerce, Science, and Transportation]

    Intercarrier Compensation Reexamined by Commission
    02.10.05 – The FCC issued a Further Notice of Proposed Rulemaking [FCC 05-33] to address possible reforms to the system of intercarrier compensation that governs payments between phone companies for services that travel over multiple networks. The current system relies on distinctions between types of carriers (long distance vs. local) and between services (wireless vs. wireline) that do not have a bearing on the actual costs of service provision. The Commission is searching for an alternative that will encourage efficient investment in telecommunications networks, preserve support for universal service, not favor any technology or give anyone a competitive advantage, and minimize regulatory intervention. The Commission is considering seven proposals that have been submitted by industry and other interested parties. Details on the proposals are available at [http://www.fcc.gov/wcb/ppd/].
    [Source: FCC]

    President’s Budget Holds the Line on Federal Research & Development
    02.07.05 – President Bush’s proposed FY 2006 budget holds most Federal research & development spending constant from the previous year, according to analysis by the American Association for the Advancement of Science (AAAS), a non-profit organization that advocates investment in science and technology. Because of budget deficits, President Bush pledged not to increase non-defense discretionary spending; few agencies would receive a real increase in R&D funding under the proposed budget as a result. According the AAAS analysis, total research funds will decrease in FY 2006 by 0.6%, with total R&D only increasing by 0.6%. In real terms, these are both cuts, since the rate of inflation is approximately 2%. A functional breakdown of research spending shows that the largest (in percentage terms) increases in funding will be for space, energy, and justice-related R&D, where as the largest decreases will be for agriculture and commerce-related research. For more information about the R&D budget, see [http://www.aaas.org/spp/rd/prel06p.htm].
    [Source: AAAS]

    Georgia: Telecom/IT Policy Legislative Tracking
    02.28.05 – The Georgia General Assembly meets in a 40-day legislative session beginning the second Monday in January and usually ending around mid-March. Both the House, the Senate, and the Governor’s office are controlled by Republicans for the first time in Georgia’s history, which is likely to make the 2005-06 legislative sessions more active than usual. A number of bills have been proposed in both chambers relating to telecommunications or information technology policy. Below is a short synopsis of all relevant legislation, the status of the bills as of press time (3/01/05), and a link to the page on the General Assembly website containing information about the bill.

    HB 148 – Requires local governments to report any 911 and E911 charges they collect to the Georgia Emergency Management Agency and provides administrative penalties for late or delinquent reports. Referred to Public Utilities & Telecommunications Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb148.htm]

    HB 162 – Accelerates the disconnection of phone service to people who are guilty of sending unsolicited faxes. Referred to Public Utilities & Telecommunications Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb162.htm]

    HB 174 – Changes billing for 911 services so that billing occurs within boundaries of local governments rather than in geographic districts. Referred to Public Utilities & Telecommunications Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb174.htm]

    HB 194 – Provides a tax credit for teleworking in the Atlanta area. The credit would cover up to $1,500 in teleworking-related expenses for each new employee who teleworks. Referred to Ways & Means Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb194.htm]

    HB 303 – Requires wireless companies to provide new customers with detailed service maps indicating coverage areas. Referred to Public Utilities & Telecommunications Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb303.htm]

    HB 310 – “Georgia Telemedicine Act.” Forbids health insurers from requiring face-to-face contact with doctors for payment of medical services that can be adequately handled via telemedicine. Referred to the Insurance Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb310.htm]

    HB 322 – Forbids Class D and Instructional Driving Permit holders (licenses for drivers 18 & under) from talking on the phone while driving. Referred to the Motor Vehicles Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb322.htm]

    HB 393 – Would provide for a telecommuting tax credit of up to $1000 per employee if 20% of employees are converted to telecommuters. Referred to Ways & Means Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb393.htm]

    HB 580 – Would require electronic ballots to have a paper record of votes cast to allow verification by voters and hand recounts. Referred to Governmental Affairs Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb580.htm]

    HB 649 – Would impose requirements on companies collecting personal information to safeguard that information. Referred to the Non-Civil Judiciary Committee.
    [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-28A1.txt]

    HB 655 – Would create a telecommunications service to provide access to information for blind and other visually disabled individuals, paid for by a relay surcharge. This is similar to a bill that was introduced in the previous session. Referred to Public Utilities and Telecommunications Committee.
    [http://www.legis.state.ga.us/legis/2005_06/sum/hb655.htm]

    SB 62 – “Slam Spam Email Act.” As reported in the December-January edition of Telecom/IT Policy Highlights, the Georgia Slam Spam Email Act would create serious penalties for false and misleading practices that result in unsolicited commercial email. This bill is part of Governor Sonny Perdue’s legislative agenda. Senate Committee on Science & Technology Substitute, Favorably Reported. [http://www.legis.state.ga.us/legis/2005_06/sum/sb62.htm]

    SB 113 – Would allow local governments to divert some funding from 911 services to establish a “311” program for non-emergency services or as a 911 backup. Referred to Committee on Regulated Industries & Utilities. [http://www.legis.state.ga.us/legis/2005_06/sum/sb113.htm]

    SB 120 – Would prohibit state government, including the Georgia Public Service Commission, from imposing regulations on broadband Internet, voice over Internet Protocol, or wireless service provider in the state, except as required by the FCC for public safety. The bill would also preclude local governments from offering their own services, and it would void past rulings of the Public Service Commission relating to DSL provision. The bill’s stated purpose is “to promote market based competition for broadband service, voice over Internet protocol service, and wireless service.” Referred to Committee on Regulated Industries & Utilities. [http://www.legis.state.ga.us/legis/2005_06/sum/sb120.htm]

    SB 127 – “Georgia Computer Security Act.” Would make it a felony (1-3 yrs in prison) to take possession of another’s computer, to divert Internet browsers to unauthorized websites, modify settings, collect personally identifiable information through keystroke logging, interfere with downloads, install or uninstall software without authorization, falsify an identity to obtain personal information, or mislead computer users in other ways. The bill requires specific warnings in programs that transmit personal information, and it exempts service providers from liability. Committee Substitute; Favorably Reported by Committee on Science & Technology. [http://www.legis.state.ga.us/legis/2005_06/sum/sb127.htm]

    SB 162 – Changes some requirements relating to electronic communications disclosure in criminal investigations. Referred to the Committee on the Judiciary.
    [http://www.legis.state.ga.us/legis/2005_06/sum/sb162.htm]

    SB 204 – Gives permission to create electronic health records, with the stipulation that they must be secure, readable/retrievable, and backed up on a regular basis. The bill does not require the separate keeping of a hard copy, and it applies the same legal rights to electronic records as paper ones. Committee Substitute; Favorably Reported by Committee on Health & Human Services.
    [http://www.legis.state.ga.us/legis/2005_06/sum/sb204.htm]

    SB 222 – Would require electronic voting machines to produce a paper record for recount purposes. Referred to Committee on State and Local Government Operations.
    [http://www.legis.state.ga.us/legis/2005_06/sum/sb222.htm]

    SB 241 – Allows for the notarization of electronic records and signatures. Referred to Committee on Science & Technology.
    [http://www.legis.state.ga.us/legis/2005_06/sum/sb241.htm]

    SB 251 – “Database Privacy and Anti-Identity Theft Act.” Would require businesses maintaining personal information to notify customers in the event of a security breach and allow businesses to recover damages through civil action. It would also make unauthorized attempts to access personal information stored in electronic databases a felony, punishable by up to ten years in prison and/or a fine of up to $100,000. Referred to Committee on Science & Technology.
    [http://www.legis.state.ga.us/legis/2005_06/sum/sb251.htm]


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  • Regulatory Activities

    Cable Companies Not Required to Carry Both Digital and Analog Signals
    02.10.05 – The FCC issued a Second Report and Order and First Order on Reconsideration [FCC 05-27] addressing cable companies’ requirements with respect to the digital television (DTV) transition. The FCC tentatively decided not to impose a “dual carriage” requirement on cable operators, which would have required them to simultaneously carry analog and digital signals from broadcasters. Additionally, the Commission ruled that cable operators will not have to carry more than one digital program stream from a broadcaster. In a statement the Commission said that “the Order found that mandatory dual carriage is not necessary either to advance the governmental interests as identified by Congress and the Supreme Court, or to achieve the digital television transition.”
    Release: [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256701A1.txt]. The Commission had previously suggested that requiring cable operators to carry multiple digital programming streams from each broadcaster would violate the First Amendment rights of cable providers. The current statutory requirement faced by cable operators is to carry the “primary video” of broadcasters. For a copy of the Order see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-27A1.txt]

    Consumer Protection Rules Clarified by Commission
    02.10.05 – The FCC issued a Second Order on Reconsideration [FCC 05-28] that clarifies a number of provisions in the rules established by the Telephone Consumer Protection Act of 1991 (TCPA). Most of the provisions relate to the national do-not-call registry. Specifically, the Commission declined to reconsider the rules establishing the registry, refused to expand exemptions from the do-not-call rules, and concluded that an existing business relationship exists during any time that a financial contract is in force, such as for a bank account or credit card. The Commission also addressed issues related to prerecorded messages and debt collection. For a copy of the Commission’s Order, see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-28A1.txt].
    [Source: FCC]

    FCC Raises $2 Billion in Spectrum Auction
    02.16.2005 – The FCC’s auction of broadband Personal Communications Services (PCS) ended on February 15, 2005 and raised total net revenue of over $2 billion. In 1994, the Commission attempted to make spectrum available to a wide variety of entities and set aside certain portions of the broadband PCS spectrum for entrepreneurs. Some of the auction’s winning bidders (NextWave, for example) later declared bankruptcy, tying up much of the C block of the broadband PCS spectrum in litigation. The FCC negotiated several settlements to resolve the matter and then made the spectrum available for competitive bidding. Twenty four bidders won 217 licenses for the A, C, D, E, and F blocks of the broadband PCS spectrum. The FCC has now completed 55 auctions in the twelve years since it was granted competitive bidding authority.
    [Source: FCC]

    Prepaid Phone Calls Require Universal Service, Access Fees, FCC Rules
    02.23.05 – The FCC issued an Order and Notice of Proposed Rulemaking [FCC 05-41] to rule against AT&T Corp.’s assertion that prepaid calling services it provided were exempt from universal service fund (USF) contributions. AT&T, which had withheld $160 million in contributions from its prepaid service since 1999, had argued that the prepaid calls should be classified under a different regulatory scheme because they included advertisements that made them an “information service.” The FCC rejected that argument in its Order and also ordered AT&T to pay intrastate access charges for prepaid calls that originate and end in the same state. AT&T had been avoiding these access charges by routing the call through an out-of-state switch that contained an advertising message such as “Thank you for using AT&T.” The Commission initiated the rulemaking proceeding to evaluate a comprehensive regulatory approach to prepaid calling services. A copy of the Commission’s action is available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-41A1.txt].
    [Source: FCC]

    Vonage Requests FCC Inquiry into Port-Blocking of IP Telephony
    02.15.05 – VoIP service provider Vonage has informally complained to the FCC that some local Internet service providers (ISPs) are blocking the company’s services on their networks. ISPs have the ability to block or slow traffic on their ports, thus altering the information and services available to consumers. There is no law or regulation against this practice, and ISPs generally have total control over the flow of information across their networks. Traditionally, this has not been an issue, and ISPs are generally loath to interfere with their customers’ web practices. However, the growth of heavy-bandwidth activities such as file-sharing and streaming video can cause traffic jams on networks if their flow is not regulated. Vonage is concerned that their VoIP service will be shut down completely if ISPs decide to block the traffic for anti-competitive reasons.

    The FCC has not indicated whether it would consider taking formal action in the case, although it has a limited regulatory authority of VoIP. However, the problem raised by Vonage is a legitimate one. With many customers receiving high-speed Internet access through DSL, phone companies could stand to profit from port-blocking VoIP traffic. Additionally, Vonage and other VoIP service providers fear a system where ISPs would charge them to allow their traffic to flow on their networks. Other service providers, such as those who provide digital video recording, could face similar predicaments.

    In a February 2004 symposium, FCC Chairman Michael Powell delivered a speech in which he advocated for the preservation of four “Internet Freedoms:” the freedom to access content, to use applications, to attach personal devices, and to obtain service plan information. These freedoms would prevent port-blocking and give consumers the right to use VoIP services. Powell warned that violation of these principles might lead to regulation, saying that industry “can avoid future regulation on this issue by embracing unparalleled openness and consumer choice.” Text of his remarks are available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-243556A1.txt]. It remains to be seen whether or not this issue will be addressed by forthcoming regulation at the FCC or by Congress as it tackles telecommunications reform.
    [Sources: The Washington Post, Advanced IP Pipeline, FCC]


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  • Judicial Activities

    Appeals Court Hears Challenges to FCC’s Broadcast Flag Rule for Digital TV
    02.22.05 – In November 2003, the FCC adopted a rule that would require devices receiving digital television broadcasts to recognize an anti-piracy technology known as a broadcast flag, which can prevent users from copying programs for distribution over the Internet. This rule was challenged by consumer’s groups and library associations who fear that the restriction will limit legal use of broadcast television and impose significant restraints upon the use of consumer electronics devices, such as recording for educational purposes. A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit heard arguments in the case, and the judges questioned the FCC as to whether it had exceeded its authority in writing the rule. The FCC has not traditionally exercised the authority it used to write the broadcast flag regulation; the agency does not have a broad mandate to regulate against piracy. A decision from the Court is expected in the next few months. The broadcast flag rule goes into effect July 1, 2005.
    [Sources: FCC, U.S. Court of Appeals for the D.C. Circuit, USA Today]


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  • Research / Reports

    Broadband over Power Lines (BPL) Report - NARUC
    02.15.05 – The National Association of Regulatory Utility Commissioners (NARUC) has released a report from its Broadband over Power Lines (BPL) Task Force on the role that state regulatory commissions can play in the new technology. The report breaks down the issues into three categories: technology, security, and regulatory issues. The task force recommends in the report that state commissioners learn more about BPL so they avoid prescribing anticipatory forms of regulation that distort the market or impede innovation. The task force suggests a light-touch regulatory approach to BPL and close scrutiny of the technology. For a copy of the report (PDF), see
    [http://www.naruc.org/associations/1773/files/bplreport_0205.pdf].
    [Source: NARUC]

    Cato Institute Report Blames Regulation for the Decline of the Telecom Industry
    02.07.05 – The Cato Institute, a non-profit libertarian public policy research organization, has published an analysis of the decline in the telecommunications industry that occurred at the turn of this century. The report’s author, Lawrence Gasman, argues that the Telecommunications Act of 1996 is largely responsible for this decline because of an overemphasis on increasing the number of competitors in the industry. Gasman suggests that if Congress had completely deregulated the industry instead of opting for mere reform, new technologies would have developed more quickly and led to competition against the incumbent telecom firms. A copy of the report is available from [http://www.cato.org/pub_display.php?pub_id=3662].

    Subsidizing DTV Transition Could Cost up to $10 Billion
    02.17.05 – The Government Accountability Office (GAO) conducted a study estimating the costs required to subsidize the transition to digital television (DTV) if the Federal government paid for DTV equipment (such as set-top boxes) for everyone who needs it in order to be able to watch digital broadcast television. The study found that only 19 percent of American households (approx. 21 million) rely exclusively on free over-the-air TV broadcasts; the rest rely on cable or satellite services, which currently provide broadcast television to their subscribers. GAO provided two estimates, one for the cost of upgrading equipment for the 19% who do not have cable/satellite, and one for the cost of upgrading equipment for all households. In the first case, GAO estimated a subsidy cost of somewhere between $460 million and $2 billion, depending on the cost of set-top boxes and whether or not a means test (income cap) is applied to the subsidy. If cable and satellite subscribers require equipment subsidies, GAO estimates the costs to be between $1.8 billion and $10.6 billion. For a copy of the report, see [http://www.gao.gov/atext/d05258t.txt].
    [Source: GAO]


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  • Items of Interest

    Atlanta Ranks As #2 Tech City in Popular Science
    02.01.05 – Popular Science magazine released a ranking of the “top tech cities” in America, based on a combination of raw data from technology indicators and expert and staff opinion. Atlanta ranked 2nd in the magazine’s list, scoring a 98 out of a possible 100 points on the scale. Minneapolis/St. Paul was the highest-rated city in the survey, with particular strengths in innovative transportation solutions and energy technology. Rounding out the top five were Washington, DC, Boston/Cambridge, MA, and San Diego, CA. Among the 36 factors used in the rankings were the number of Wi-Fi hotspots and the R&D budgets for area universities. The survey attempted to measure the level of technological involvement in transportation, medicine, jobs, education, energy, and in citizens’ everyday lives. The rankings can be found on Popular Science’s website at [http://www.popsci.com/popsci/generaltech/article/0,20967,1027545,00.html].
    [Source: Popular Science]

    Concerns Raised About Independence of FCC Consumer Advisory Committee
    02.03.05 – Teletruth, an independent consumer advocacy organization focusing on the telecom industry, has accused the FCC’s Consumer Advisory Committee (CAC) of being dominated by representatives of the major telecom companies. The CAC was rechartered at the end of 2002 with the goal of making recommendations to the FCC regarding consumer issues and helping to facilitate participation by consumers (including people with disabilities and persons from rural areas) in Commission proceedings. See CAC website at [http://www.fcc.gov/cgb/cac/]. The Committee’s membership includes representatives from groups such as AARP, American Council for the Blind, the National Urban League, the National Consumers League, and Teletruth. In addition, the CAC has members representing telecom companies and industry organizations including BellSouth, MCI, Cingular Wireless, AT&T Corp., the National Association of Broadcasters, and the National Cable Telecommunications Association. See [http://www.fcc.gov/cgb/cac/members.html] for a full membership list. Teletruth has requested an investigation under the Federal Advisory Committee Act into what it describes as “the lack of a consumer voice” on the Committee. See [http://www.newnetworks.com/CACpressrelease.htm] for more information about Teletruth’s complaint.
    [Sources: FCC, Teletruth]

    MCI Agrees to Merge with Verizon, But Listens to Offers from Qwest
    02.14.05 – Verizon Communications Inc. announced its plan to acquire long-distance provider MCI Corp., creating a telecommunications giant to rival SBC after their merger with AT&T. The deal, which has been approved by the Boards of Directors of both companies, will give MCI shareholders $4.8 billion in equity and $488 million in cash, with a total price tag of $6.75 billion. The buyout must be approved by MCI shareholders before it can proceed to the regulatory approval stage, which is expected to begin in early 2006. See Verizon’s release about the merger at [http://newscenter.verizon.com/proactive/newsroom/release.vtml?id=89338].

    However, the Verizon-MCI deal might falter before that stage if MCI decides to entertain a better offer from Verizon rival Qwest, which submitted a plan to the MCI Board of Directors to purchase the company for $8 billion. MCI had rejected an earlier offer from Qwest in favor of Verizon’s proposal, but the $8 billion deal was a substantial increase from their previous offer. MCI has indicated it will be considering the proposal carefully; if it reneges on its offer to Verizon, it would owe the company a $200 million breakup fee. For more information on the Qwest proposal, see [http://www.qwest.com/about/media/pressroom/1,1281,1659_archive,00.html].


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  • Events

    Workshop to Examine Broadband Alternatives to Fiber
    03.18.05 – The Columbia Institute for Tele-Information (CITI) at Columbia University will host a workshop on March 18, 2005 entitled “Alternative Broadband Platforms: Can They Compete With Fiber Optics? Where?” The workshop will examine technologies such as broadband over power lines (BPL), WiFi, WiMax, 3G, and free space optics, asking the question of whether any of these technologies can compete in the long-run with the high-bandwidth of fiber optics. Workshop attendees will include representatives from industry as well as policymakers, and the forum will serve as a foundation for an April 22 conference on the sustainability of multiple broadband infrastructures. For more information visit [http://www.citi.columbia.edu/alternatives.htm].
    [Source: CITI]


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  • Newsletter Info

    Center for Advanced Communications Policy
    Telecom/IT Policy Highlights Volume 5.02
    February 2005
    Alan Bakowski, Editor

    Telecom/IT Policy Highlights presents legislative, regulatory, legal, and other items of interest pertinent to information, telecommunications, and related technology policy and research. For additional information regarding the information provided in this report, or if there are newsworthy items that should be included in future editions, please contact , Research Specialist, or , Associate Director of Research.
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