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Telecom/IT Policy Highlights

Volume: 5.08
September 2005

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

    In late August, Hurricane Katrina devastated the Gulf Coast. The coastal regions of Louisiana, Mississippi, and Alabama suffered the brunt of Katrina's wrath, one of the most destructive and costly natural disasters in the history of the United States. The storm roiled existing communications infrastructure making it nearly impossible to coordinate relief efforts at the most critical of times, shortly after the storm hit. Many of the same problems that plagued rescue workers during the September 11, 2001 terrorist attacks also hampered hurricane rescue workers. Cell phone towers were destroyed, satellite phones proved only semi-reliable, and electric power became scarce. The problems brought to bear by Katrina illustrate the importance of establishing regulations that guarantee a robust communications infrastructure in times of duress, and equally important, a distinct plan of action for authorities to follow in the case of a national emergency.

    In the wake of Katrina, and while Hurricane Rita swirled over the Gulf of Mexico, the Federal Communications Commission (FCC) pledged to examine the nation's emergency communications infrastructure. The agency proposed changes that would enable it to take a more prominent role in coordinating emergency communications. In addition, the FCC proposed spending money from the Universal Service Fund to help telecom companies rebuild damaged infrastructure.

    Because the nation's emergency communications infrastructure proved fallible in the midst of Katrina's aftermath, lawmakers will intensify efforts to pass legislation or regulations that empower emergency response teams. Government officials must take preemptive measures to dissipate future catastrophes; public confidence must be restored. The need for policymakers to overcome the complexity of building a seamless emergency communications network for police, fire, and medical personnel with the need to implement changes in a timely manner seems to be emerging as a daunting imperative.


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  • Policy / Legislative Activities

    FCC's Martin Testifies Before Congress 09.30.2005 – The House Energy and Commerce Subcommittee on Telecommunications and the Internet held a hearing on “Public Safety Communications from 9/11 to Katrina: Critical Public Policy Lessons.” FCC Chairman Kevin Martin reiterated many of the same themes the FCC expressed at the Open Commission Meeting in Atlanta, Georgia, on September 14 (see story below) and at the “Hearing on Communications in a Disaster,” held before the Committee on Commerce, Science and Transportation of the United States Senate on September 22.

    First, Mr. Martin offered an update on the progress of communications recovery efforts along the Gulf Coast: "While considerable problems remain, the companies in the region have made meaningful progress." Mr. Martin then stressed the significance of implementing an interoperable wireless communications system that is at once rugged and mobile. He cited the need for "smart radios" that can bounce between different frequencies and formats to uphold lines of communication. He suggested that inflatable antennas and antennas on wheels might one day serve as cornerstones for emergency ad hoc networks. Also of note, Mr. Martin's testimony cited the potential for satellites and IP-based technologies such as VoIP to create redundant, resilient networks.

    Additionally, the FCC may grant licenses for more low-power FM radio stations. Prometheus Radio, a nonprofit organization, started a 6-watt station in the parking lot of Houston's Astrodome for Katrina evacuees. The National Association of Broadcasters and National Public Radio have traditionally opposed low-power FM radio stations contending the potential for signal interference is too great. But it's possible that technical changes could alleviate these concerns. Mr. Martin's prepared remarks can be read at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261417A1.txt].
    [Sources: Federal Communications Commission, Washington Post, National Journal's Insider Update: The Telecom Act]

    House Science Committee Addresses Cybersecurity 09.15.2005 – Chief Information Officers from major corporations including British Petroleum, The Dow Chemical Company, and SBC Services testified at a hearing before the House Science Committee, addressing the country's vulnerability to cyber attacks and steps the federal government and private sector are taking or should take to thwart attacks of this nature. The hearing offered a platform to define the role of the new Assistant Secretary for Cybersecurity and Telecommunications. Homeland Security Secretary Michael Chertoff announced the creation of this post in July. Mr. Chertoff's announcement explained the new secretary will be responsible for "identifying and assessing the vulnerability of critical telecommunications infrastructure and assets, providing timely, actionable and valuable threat information, and leading the national response to cyber and telecommunications attacks." Witnesses lauded the creation of the new post but cited the country's increasing reliance on the Internet and warned of the significant disruption that a cyber-attack could inflict, especially if executed in tandem with a physical attack.
    [Sources: House Committee On Science, Department of Homeland Security]

    Proposed Broadband Legislation to Instigate Competition 09.15.2005 – House Energy and Commerce Committee Chairman Joe Barton, (R-TX) released staff discussion draft legislation to supplant the Telecommunications Act of 1996. Buoyed at least in part by the NCTA v. Brand X decision, Barton and his bipartisan committee aim to devise "a fresh approach that will encourage Internet providers to expand and improve broadband networks, spur growth in the technology sector and develop cutting edge services for customers." The Washington Post stated the draft is a victory for advocates of 'net neutrality,' a principle "crucial to preserving the open nature of the Internet and preventing big broadband providers from squeezing out smaller competitors."

    The staff draft proposes a common regulatory definition for all broadband Internet transmission services (BITS), thereby putting Digital Subscriber Line (DSL) providers on equal footing with cable Internet service providers and other broadband service providers. In addition, the legislation seeks to align VoIP more closely with traditional telephony. For example, the proposed legislation authorizes the FCC to mandate that VoIP subscribers contribute to the Universal Service Fund and ensures VoIP subscribers have access to 911 emergency services. The draft also proposes legislation making it easier for telephone companies to provide television over a broadband connection thus corralling cable television providers and broadband video providers into the same pen.

    The draft is mindful of individuals with disabilities. Section 106 permits the FCC to participate in the development standards that promote universal access. Section 208 requires VoIP service providers to cater to subscribers with hearing or speech disabilities. Section 404 is most expansive in this respect. It states "BITS, VoIP, and broadband video service providers must ensure that their equipment and services are accessible to persons with disabilities, and compatible with specialized equipment already in use by persons with disabilities, unless doing so would constitute undue burden." The draft and section by section summary of the legislation is available in Portable Document Format (PDF) at [http://energycommerce.house.gov/108/News/09152005_1642.htm]
    [Source: House Energy and Commerce Committee]


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  • Regulatory Activities

    FCC Adopts New Policy Re: Broadband Internet Access 09.23.2005 – The FCC released a new Policy Statement [FCC 05-151], designed to guide the Commission in its ongoing policymaking activities. The statement delineates four key principles meant to encourage broadband deployment. In the name of accessibility, affordability, and neutrality the Commission expressed these core beliefs:

    1. Consumers are entitled to access the lawful Internet content of their choice;
    2. Consumers are entitled to run applications and services of their choice, subject to the needs of law enforcement;
    3. Consumers are entitled to connect their choice of legal devices that do not harm the network; and
    4. Consumers are entitled to competition among network providers, application and service providers, and content providers.

    The phrase "subject to the needs of law enforcement," appended to the second core belief has drawn criticism from right-to-privacy advocates. Critics interpret the dictum to mean that even encrypted VoIP transmissions must contain backdoors for wiretapping by police or the FBI. However, the addendum is in line with the FCC's Report and Order [FCC 05-153] which concluded the Communications Assistance for Law Enforcement Act (CALEA) is applicable to VoIP providers.

    The FCC policy statement comes on the heels of Report and Order [FCC 05-150]. This order adopts a new regulatory framework for broadband services and formally aligns FCC policy with the Supreme Court's ruling in NCTA v. Brand X. Issued in June, the ruling places telephone and cable companies on a level playing field with regards to wireline broadband Internet services.

    • View Policy Statement [FCC 05-151]
    at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-151A1.txt]

    • View Report and Order [FCC 05-150]
    at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-150A1.txt]

    • View Report and Order [FCC 05-153]
    at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-153A1.txt]
    [Source: Federal Communications Commission]

    FCC: Broadcasters Must Ensure Universal Access to Emergency Broadcast Information 09.09.2005 – In light of Hurricane Katrina evacuation and relief efforts, the FCC issued a notice reminding video programming distributors of the need to make emergency information regarding Hurricane Katrina accessible to persons with hearing or vision disabilities. Video programming distributors are required by law to make emergency information accessible to persons with disabilities. The agency stated "all distributors of video programming who provide emergency information about a current emergency must make that information accessible to persons who are deaf or hard of hearing, or blind or who have low vision in accordance with 47 C.F.R. § 79.2."

    Further, programming distributors were told emergency information should not block closed captioning and closed captioning should not block emergency information provided by crawls, scrolls, or similar mechanisms. Despite innumerable sacrifices made by communications company employees to assist victims and overcome unprecedented challenges, the FCC made it clear that compliance with the aforementioned bylaw is mandatory and must be adhered to by broadcasters, cable operators, and satellite television services. Inclusive dissemination of emergency information is most crucial in times of great turbulence.

    To read the public notice in its entirety, see
    [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2438A1.txt]
    [Source: Federal Communications Commission]

    FCC Reacts to Katrina Disaster Response 09.14.2005 – The FCC held an “Open Commission Meeting on the Effects of Hurricane Katrina” at the BellSouth Emergency Control Center in Atlanta, Georgia. FCC Commissioners Michael Copps, Jonathan Adelstein, and Kathleen Abernathy, as well as Chairman Kevin Martin offered individual statements. Mr. Copps addressed the importance of full-scale emergency planning: "Last year, the 9/11 Commission Report described a state of communications unreadiness that seriously hindered our country's ability to respond to that attack. It also described a chilling picture of communications unreadiness three years later. And Hurricane Katrina has shown us we still have far to go."

    The FCC promised an independent review of the impact of the hurricane to determine ways to improve disaster response. In a shift from reliance on the Department of Homeland Security, the agency raised the prospect of creating a new Public Safety bureau under its jurisdiction. This bureau would facilitate disaster relief activity by improving network reliability and setting interoperability standards for telecommunications equipment. Additionally, the bureau would coordinate communication activity between the government, media, and the public at large in times of crisis. At the same meeting, the FCC proposed releasing $211 million from the Universal Service Fund to assist phone companies in redeploying networks in the Gulf Coast region. However, the projected cost to replace the infrastructure ruined by Katrina easily exceeds this amount. BellSouth estimates the cost to rebuild is somewhere between $400 million and $600 million.

    Statements of the FCC Commissioners are available below.

    • Copps Statement
    [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261100A1.txt]

    • Martin Statement:
    [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261095A1.txt]

    • Adelstein Statement:
    [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261098A1.txt]

    • Abernathy Statement:
    [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261097A1.txt]
    [Source: Federal Communications Commission]

    National Transportation Safety Board Seeks Cell Phone Ban For Teen Drivers 09.20.2005 – The National Transportation Safety Board would like to proscribe the use of cell phones and other wireless devices by young and inexperienced drivers. Since highway crashes are the leading cause of death among 15-to-20-year-olds, US Transportation safety officials hope such a restriction will ensure that new drivers stay safe by steering clear of unnecessary distractions. This priority sits atop a "most wanted" list of proposed restrictions geared toward maintaining the safety of teen drivers. Other precautions proposed by the NTS board impose limitations on teens' night driving and the number of passengers.
    [Source: National Transportation Safety Board and Reuters]

    Telephone Deals Near Approval 09.20.2005 – FCC Chairman Kevin Martin is recommending approval of Verizon Communications' $8.5 billion purchase of MCI and of SBC Communications’ $16 billion takeover of AT&T. The FCC is expected to vote on the deals soon, possibly as early as October 12. However, Justice Department officials are still trying to resolve antitrust issues associated with the merger. According to the article, "Investigators have concluded that the merging companies must sell some assets, moves they believe are needed to preserve competition for high-volume business customers."
    [Source: Wall Street Journal]

    Verizon, Cox Set to Rumble In Northern Virginia 09.27.2005 – The Fairfax County, Virginia, board of supervisors unanimously granted approval to allow Verizon Communications to sell television services to its residents. Currently Cox Communications dominates the Washington DC suburb, boasting 242,000 customers. The competitive landscape promises to benefit consumers, either by dint of lower prices, increased entertainment options or some combination therein.

    Verizon plans to begin offering its FiOS television service, delivered over the company’s fiber optic network, to area residents by early next year. The company launched the service on September 22 in Keller, Texas. There, Verizon is charging $39.95 per month for a 180-channel package. The package includes a wide selection of video on demand content, digital video recording capability, and integration with High Definition programming. Last year Verizon launched its FiOS Internet service in select locations.

    FiOS is based on the premise of FTTH, or Fiber to the Home, which literally brings fiber optics technology all the way to consumers' doorsteps. The technology is especially suited to handling bandwidth intensive applications.
    [Sources: The Washington Post, Verizon.com, IEC.org]


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  • Research / Reports

    FCC Releases International Telecommunications Industry Report 09.14.2005 – The FCC released a report analyzing trends in the international telecommunications industry. The report focuses on international phone calls made overseas from the US. The FCC cited several key statistical findings disclosed by the report:

    • In 1975, international service represented less than 5% of the revenues U.S. carriers received from providing long distance services. With the installation of higher capacity and lower cost submarine cables in the 1970s, it grew in importance. International service has represented about 20% of overall toll revenues since the mid-1990s.

    • In 2003, the five most heavily used routes, Canada, Germany, Mexico, Philippines, and United Kingdom accounted for 37% of U.S. billed minutes.

    • Customers who make frequent international calls get significant savings by using special calling plans, prepaid calling cards and other means of avoiding basic schedule rates.
    [Source: Federal Communication Commission]


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  • Items of Interest

    Google Hints at Long-term Strategy 09.20.2005 – Google confirmed that the company is testing Google WiFi, a free wireless Internet service. Currently, the service is deployed at two test sites in Silicone Valley, a pizza parlor and a gym. A company spokesperson termed the project "a community outreach program" and explained that feedback from users will determine how the platform evolves. In addition, the company recently unfurled Google Secure Access, a complementary application that allows users to establish a secure WiFi connection when using Google WiFi. This past April, Google began sponsorship of a wireless hotspot in San Francisco's Union Square. These moves, in conjunction with the fact that Google has been stockpiling miles of fiber optic cable during the past year and the release of Google Talk, a VoIP and instant messaging service, suggest the company may enter the telecom fray.

    More speculation about Google's long-term strategy came about on September 26. The company announced an agreement with UPN to showcase the premier of Chris Rock's sitcom "Everybody Hates Chris." The episode was made available for streaming via Google Video for a stretch of four days, prompting many users to test Google's robust video player. The accord ostensibly links Google to CBS as Viacom is the parent company of UPN and CBS.
    [Sources: Business 2.0, Reuters, Google.com, Red Herring]


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  • Upcoming Events

    State Science and Technology Institute to Hold Annual Conference in Atlanta
    The State Science and Technology Institute (SSTI), a national nonprofit organization dedicated to encouraging economic development through science and technology, will hold its 9th annual conference in Atlanta, Georgia on October 19-21, 2005. The event will feature workshops and seminars on topics such as commercializing innovations from universities, improving entrepreneurial assistance and research grants, national innovation policy, and increasing access to risk capital. BellSouth Chairman and CEO Duane Ackerman will deliver a keynote address. For information and registration details, see [http://www.ssti.org/conference05.htm].
    [Source: SSTI]


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  • Newsletter Info

    Center for Advanced Communications Policy
    Telecom/IT Policy Highlights Volume 5.09
    September 2005
    Michael Wilt, Editor
    Lynzee Head, Editor in Chief

    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 ,Graduate Research Assistant, or , Research Scientist.
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