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Telecom/IT Policy Highlights

Volume: 5.10
November 2005

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

    In November news, the FCC's shift to consider support for a la carte cable pricing was an interesting revision of its previous position. Also of note, In August 2004, the Federal Communications Commission (FCC) issued a Notice of Proposed Rulemaking [FCC 04-189], calling for comments regarding the Emergency Alert System (EAS). Early this month a Report & Order and Further Notice of Proposed Rulemaking (FNPR) [FCC 05-191] was adopted by the Commission. The FPRN notes the critical need for people with disabilities to be able to receive emergency notifications from different sources, paralleling policy findings of Wireless RERC initiatives. The Wireless RERC, a collaborative effort between the Center for Advanced Communications Policy, the Shepherd Center, and other research centers at Georgia Tech, was cited multiple times in the NPRM.

    In a speech before the Subcommittee on Telecommunications and the Internet, Joe Barton, Chairman of the Committee on Energy and Commerce, expressed the need for statutes to reflect technological and competitive reality: "New technologies and services are good for consumers, good for workers, and good for the economy. But these new technologies and services are statutory misfits, and the most innovative are the least encouraged." Establishing uniform obligations for telecom firms will ensure consumers benefit from increased competition sooner rather than later. Both Congress and the FCC are taking steps to this end, as many of the stories below suggest, but a sweeping update is not quite imminent.

    Finally, the Center for Advanced Communications Policy (CACP), formerly GCATT’s Office of Technology Policy, was renamed to reflect its core competency in advanced communications technology and growth as a regional, state and national resource for timely advice on advanced and emerging communications and technology policy. CACP continues to operate as a neutral authority, monitoring and assessing related legislative and regulatory issues, identifying future technology, and promoting a clearer understanding of the ever changing technology landscape.


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  • Policy / Legislative Activities

    "BITS II" Favors Bells
    11.09.2005 – The House Energy and Commerce Committee released updated draft legislation (PDF) to address broadband Internet transmission services, or BITS. The latest incarnation, dubbed BITS II, is opposed by companies including Microsoft, Amazon and Google. Language stating that Internet service providers must not "block, impair, interfere with the offering of, access to, or the use of such content, applications or services" contained in the initial draft, was excised in the second go-round. In other words, the latest draft does not guarantee network neutrality, typically cited as one of the Internet's strengths. Allowing Internet providers to play gatekeeper opens the door to discrimination against or interference with certain services. The Bells, however, have plans to defend the tenor of the legislation, generally viewed as favorable to them, The first version was the result of a group effort between Joe Barton (R-Texas), Fred Upton (R-Michigan), John Dingell (D-Michigan) and Edward Markey (D-Massachusetts). The latest draft reflects only the work of Barton and Upton.
    [Sources: Benton.org (11/09), Business Week (11/07), The Washington Post (11/24), House Committee on Energy and Commerce]

    FCC Backs a la carte Cable Pricing
    11.29.2005 – FCC Chairman Kevin Martin testified at the Open Forum on Decency held before the Senate Committee on Commerce, Science and Transportation. Mr. Martin addressed concerns raised by parents regarding a marked increase of television programs containing violence, profanity and explicit sexual content over the last several years, content considered detrimental to youngsters.

    Mr. Martin's statement calls for cable companies to offer family friendly programming packages and/or channels on an a la carte basis, allowing customers to opt-in to or out of individual cable channels and prorate their monthly bill accordingly. Last year the FCC released a report stating the a la carte model would prove unkind to consumers' wallets, a conclusion typically maintained by cable companies. However, Mr. Martin had concerns about the logic and some of the assumptions that underlie the 2004 report and was compelled to revisit the report's findings.

    Though the FCC does not have the authority to mandate a switch to a channel-by-channel pricing model, its comments will likely instigate consumer groups and lawmakers at a time when new technologies, such as digital video recorders, video-on-demand services, and Internet-based video services are empowering consumers and changing media consumption patterns.
    [Sources: FCC, CNN (11/29)]

    House Rejects Internet Advertising Campaign Exemption
    11.03.05 – The House defeated The Online Freedom of Speech Act [H.R.1606], an effort to exempt all Internet communications from campaign- finance regulations. Despite garnering a 225-182 majority, as the bill was on an expedited track it needed a two-thirds majority, or supermajority, to be sent to the Senate. The vote split mostly along party lines, with Republicans favoring the bill and Democrats opposing. Had the measure been passed into law, direct mail, television, radio, and telemarketing would remain subject to campaign spending caps, but campaigning on the Internet would be unrestricted. Lloyd Doggett (D-Texas), who voted against the measure, explained the public would have "no idea whether Internet campaign ads are being financed by secret soft money." The bill's detractors demand greater disclosure in accordance with the spirit of the Bipartisan Campaign Reform Act of 2002 [Public Law No. 107-155]. To this end, The Internet Anti-Corruption and Free Speech Protection Act [H.R. 4194] has emerged as an alternative. Martin Meehan [D-Massachusetts] offers a comparison between the competing measures.
    [Sources: House.gov, The Boston Globe (11/03)]

    New Law Includes RFID Provision for Pets
    11.10.05 – President Bush signed the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2006 [Public Law No. 109-97]. The new law funds important agriculture, food safety, natural resource and other programs of the federal government. One provision of the act pertains to Radio Frequency Identification (RFID) tags embedded in domestic animals for tracking purposes. The legislation promises tag-to-reader interoperability, encryption standards and a national database for pet hospitals and shelters to help reunite owners and lost pets. In the United States, microchipped pets already number in the millions; companies like AVID Identification Systems and Digital Angel are pioneers of pet ID technology. While helpful in the event of a lost pet, some fear that this use of RFID technology may lead to privacy violations, as more and more businesses start collecting and using their customers’ personal data.
    [Source: RFID Journal (11/10), Whitehouse.gov]

    Senate Commerce Committee Slates Telecom Hearings
    11.21.2005 – The Senate Commerce Committee has scheduled 14 hearings for the first quarter of 2006 in preparation for updating the Telecommunications Act of 1996. The first two meetings, on Decency and Internet Pornography, will be held on January 19. Later meetings will discuss Video Franchising, Video Content, Competition and Convergence, Broadcast and Audio Flag, Net Neutrality, State and Local Issues and Municipal Networks, USF Contributions, USF Distribution, Wireless Issues and Spectrum Reform, Rural Telecommunications, VoIP, and Wall Street's Perspective on Telecommunications. For a detailed schedule visit the US Senate Committee on Commerce, Science, & Transportation.
    [Sources: Senate.gov, Broadcasting & Cable (11/21)]


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  • Regulatory Activities

    FCC Amends EAS Rules
    11.03.2005 ­ The FCC issued a First Report & Order and Further Notice of Proposed Rulemaking [FCC 05-191] to ensure that consumers using digital broadcast and subscription television and radio services have access to emergency alert and warning information. The R&O extends emergency alert system (EAS) rules to digital media technologies, including providers of digital broadcast and cable television, digital audio broadcasting, satellite radio, and direct broadcast satellite services. With the exception of Direct Broadcast Satellite (DBS) service, all entities must comply with the new requirements by December 31, 2006.

    The NPRM seeks comment on how the Commission can best help develop an alert and warning system that takes advantage of digital media's potential. The Notice examines how a more robust and modern EAS can better accommodate people with hearing and vision disabilities. In a statement, FCC Chairman Kevin Martin said, "Hurricane Katrina (and Hurricanes Wilma and Rita) have only served to emphasize the need for a comprehensive and robust alert system that allows officials at the national, state, and local levels to reach affected citizens in the most effective and efficient manner possible."
    [Source: FCC, Reuters (11/03)]

    FCC Seeks Comments Re: Cable Franchising Procedures
    11.18.2005 – The Federal Communications Commission (FCC) adopted a Notice of Proposed Rulemaking [FCC 05-189] seeking comment on ways to ensure local franchising authorities (LFAs) do not unreasonably refuse to award cable franchises to competitive entrants.
    [Source: FCC]

    FCC Releases NPRM on TRS and Speech-to-Speech Services
    11.30.05 – The FCC Released a Notice of Proposed Rulemaking (NPRM) on TRS and Speech-to-Speech Services for Individuals with Hearing and Speech Disabilities - Access to Emergency Services. The NPRM addresses the issue of access to emergency services for Internet-based forms of Telecommunications Relay Service (TRS), namely Video Relay Service (VRS) and Internet Protocol (IP) Relay. Emergency calls made via TRS, rather than by directly calling 911, present unique challenges because they are connected through a communications assistant (CA), rather than routed directly and automatically to the appropriate safety answering point (PSAP) over a network, and the CA must make an outbound voice telephone call to the appropriate PSAP. The CA, therefore, must have a means of determining both (1) where the relay caller is physically located, and (2) the appropriate PSAP that corresponds to that geographic location so the CA can make the outbound telephone call to the PSAP. The FCC seeks comment on ways of ensuring that the CA will be able to call the appropriate PSAP when a VRS or IP Relay user calls the relay provider and asks the CA to call emergency services. The FCC also seeks comment on whether, and if so, how, requirements ensuring that persons using VRS and IP Relay will have access to emergency services might affect the TRS funding mechanism.
    NPRM: [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-196A1.doc]
    Comment Date: (21 days after publication in the Federal Register)
    Reply Comment Date: (35 days after publication in the Federal Register)
    [Source: FCC]

    President Bush Nominates Tate for FCC; Abernathy to Step Down
    11.18.2005 – President Bush nominated Deborah Tate, a Republican Tennessee state utility regulator, and re-nominated Michael Copps, a Democratic FCC commissioner since 2001 to serve on the Federal Communications Commission. Ms. Tate will fill the vacancy created by former FCC chairman Michael Powell who stepped down in March. As expected, Republican Kathleen Abernathy announced she will leave the FCC in early December. Her term expired and she wishes to spend more time with her family. Without Abernathy, the five-member commission will have two open seats, leaving Democrats with a temporary 2-1 majority.
    [Source: Associated Press (11/18)]


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  • Judicial Activities

    BlackBerry Maker Suffers Legal Setback
    11.30.2005 – In its patent battle against NTP, Research In Motion (RIM), maker of the popular BlackBerry, a portable device that gives workers wireless access to email, suffered setbacks in U.S. District Court at the end of November. In 2001, NTP filed suit against RIM, alleging patent infringement. In March 2005, RIM and NTP announced a settlement whereby RIM would pay $450 million to NTP to license its patents, but the deal fell apart. Late this month a Virginia Judge declared the agreement invalid. RIM hoped the terms of the agreement would somehow be enforced. Now RIM faces a potential injunction and will likely acquiesce to heftier settlement. Should RIM face an injunction, the company says it has a solution at the ready to keep BlackBerries online. But that scenario is unlikely: if NTP forces a shut down, the company might be left with a smaller payoff.

    In a bright spot for RIM, preliminary rulings by the US Patent and Trademark Office effectively invalidate patents RIM was accused of violating. But a final ruling is not expected for months, and even then the USPTO appeal process could take years. Regardless, the U.S. District Judge turned down RIM's request to delay the case pending final word from the patent office.
    NTP, Inc., v. Research In Motion, LTD., 3:01-CV-767JRS United States District Court for the Eastern District of Virginia Richmond Division 2005 U.S. Dist. LEXIS 29902, November 30, 2005, Decided
    [Sources: Associated Press (12/04), C|Net (12/03), Internet News (11/30)]

    Tennessee Telecommuter's Income Taxable by New York State
    10.31.05 – The United States Supreme Court denied certiorari for a case from the Court of Appeals of New York. In Huckaby v. N.Y. State Div. of Tax Appeals, (04-1734), the Supreme Court held New York could tax 100 percent of the income of a Tennessee resident who telecommuted from Tennessee to New York. The plaintiff, Thomas Huckaby, worked on location in New York only 25 percent of the time. He typically worked from his home in Tennessee instead. Mr. Huckaby claimed that taxing the income he earned while in Tennessee was a violation of New York tax law and violated his due process rights. The Court of Appeals of New York denied both of his claims. Active legislation in Congress entitled the Telecommuter Tax Fairness Act [S.1097, H.R.2558] seeks to prohibit states from collecting local income taxes from nonresident employees.
    Huckaby v. N.Y. State Div. of Tax Appeals, 04-1734, Supreme Court of the United States, 2005 U.S. LEXIS 7864; 74 U.S.L.W. 3272, October 31, 2005, Decided
    [Source: Packets Vol. 3, No. 3, The Miami Herald (11/14)]

    Time Warner May Refuse to Pay Franchise Fees
    11.10.2005 – A federal judge ruled Time Warner Cable may refuse to pay franchise fees on cable-modem service revenue, granting the company a legal victory over the city of Minneapolis, Minnesota. The ruling (City of Minneapolis v. Time Warner Cable, Inc. et al, (05-994) is consistent with recent modem-fee related court rulings and positions held by the FCC. A second claim made by the city against Time Warner was that since 1982, Time Warner and its predecessors had used, for their own purposes, channel capacity designated for public use. The Court dismissed this claim because the suit's filing exceeded the six-year statute of limitations on conversion actions.
    City of Minneapolis v. Time Warner Cable, Inc. et al, 05-994 ADM/AJB, United States District Court for the District of Minnesota, 2005 U.S. Dist. LEXIS 27743, November 10, 2005, Decided
    [Sources: Multichannel News (11/28), Green Media Toolshed (11/18)]


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  • Items of Interest

    Cable Firms Partner with Sprint Nextel
    11.02.2005 – Comcast, Time Warner, Cox, and Advance/Newhouse Communications entered into an accord with Sprint Nextel to deliver co-branded cell phone service. The agreement cinches a "quadruple play" of voice, video, Internet, and wireless products for the cable companies. The deal will allow the companies to bundle charges from each sphere into single bill, a valuable competitive advantage because it so appeals to consumers. Cable companies' entrance into the wireless market complements their collective push into residential phone service by way of VoIP.
    [Source: Associated Press (11/02)]

    Cablevision, Verizon Dispute New York Territory
    11.23.2005 – Cablevision is less than pleased with Verizon's presence as a cable provider in Massapequa Park, NY. Cablevision fears Verizon has received, and will continue to receive, preferential treatment. In October, Cablevision filed a lawsuit against the town, naming Verizon as a defendant as well. The lawsuit argues Verizon's video service is being held to a different standard, one that usurps local controls and authority allowing Verizon to refuse service to residents considered economically and demographically undesirable. After filing the lawsuit, a Cablevision-funded group distributed fliers and advertised in local papers, accusing the mayor of betraying his town. Despite the efforts by Cablevision, Verizon remains intent on offering cable service over its fiber-optic network, known as FiOS. Already the network supports broadband Internet access in hundreds of towns. But the process for offering cable television is more cumbersome because each municipality requires a separate franchise agreement. State regulators are expected to weigh in on the legality of Verizon's Massapequa Park franchise deal in the coming weeks. The New York State Supreme Court is expected to issue a decision in the Cablevision lawsuit next month.
    [Source: Business Week (11/23), The Journal News (11/03)]

    Cisco to Acquire Scientific-Atlanta
    11.18.2005 – Cisco announced an agreement to acquire Scientific-Atlanta, a supplier of television set-top boxes, end-to-end video distribution networks, and video system integration tools. The announcement raises the prospect of new media services for the networked home, possibly including IP-based television or IPTV. The almost minted partnership is a bellwether, signaling that routing devices and other video delivery mechanisms are keystones for entertainment, communications and other online services.
    [Source: Cisco.com (11/18)]

    Demand Escalates For Satellite Phones
    11.08.2005 – Since Hurricane Katrina demonstrated the fallibility of landlines and cell phones, the demand for satellite phones has intensified. Previously, the Department of Defense was the industry's primary customer. Now satellite phone companies like Iridium and Globalstar are receiving orders from businesses, nonprofits and individuals as well. Last year, Congress passed the Enhance 911 Act [Public Law 108-494], which set aside $1.2 billion over five years to upgrade emergency systems and create a national coordinating agency for 911. Yet few improvements were made before Hurricane Katrina hit. While ad hoc wireless networks and VoIP technology might reliably exploit the redundant nature of the Internet in the future, satellite phones are perhaps a safer bet because the phones beam conversations to and from low earth orbit (LEO) satellites outside of nature's way. Therefore a signal is virtually guaranteed—provided the caller is outdoors and has a line-of-sight to the satellite.
    [Source: Benton.org (11/03), GlobalStarUSA, The Washington Post (11/08)]

    New Orleans Launches Free WiFi Network
    11.29.2005 – As part of the effort to revitalize New Orleans, post-Hurricane Katrina, the city is deploying a municipally owned WiFi network. The wireless web already covers the central business district and the French Quarter. Soon coverage will extend to the rest of the city. The venture is unique because the service is free—at least for now. Ultimately city officials may form a partnership with a private company to manage certain aspects of the network, much like Philadelphia's agreement with Earthlink. Because the city is under a state of emergency, it was able to sidestep an existing Louisiana law that prohibits municipally owned broadband networks. City officials are expected to look for a way to overturn the law, which will go back into effect as soon as the state of emergency is lifted. [Source: The Washington Post (11/29)] In a related item BellSouth withdrew its offer to donate one of its buildings to the New Orleans Police Department in the wake of that city's announcement of a city-owned WiFi Internet access network, according to the Washington Post. See [ http://www.washingtonpost.com/wp-dyn/content/article/2005/12/02/AR2005120201853.html]

    VoIP Companies Miss E-911 Deadline
    11.29.2005 – In May, the FCC announced that Internet telephone companies must ensure callers reach an emergency dispatcher when they dial 911. Further, dispatchers must be able to determine where callers are located and the number from which they are calling. The FCC deadline for Internet telephone companies to provide Enhanced 911 (E-911) service to all subscribers passed November 28. Voice over Internet Protocol (VoIP) providers that did not meet the deadline for perfect compliance, including Vonage and AT&T, may not market or accept new customers in areas without seamless E-911 coverage. Of the 3.6 million VoIP users in the United States, about half get their service from cable TV companies that already guarantee E-911 service. It was estimated 600,000 Internet phone users would not have E-911 service by the deadline.
    [Source: The Washington Post (11/29)]


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  • CACP Updates

    CACP: A New Beginning for GCATT's Office of Technology Policy and Programs (OTP)
    The Center for Advanced Communications Policy (CACP), formerly GCATT’s Office of Technology Policy and Programs, was renamed recently to reflect its core competency in advanced communications technology and growth as a regional, state and national resource for timely advice on advanced and emerging communications and technology policy. CACP continues to operate as a neutral authority, monitoring and assessing related legislative and regulatory issues, identifying future technology, and promoting a clearer understanding of the ever changing technology landscape. CACP is the headquarters for the Wireless Rehabilitation Engineering Research Center (RERC) and leads the policy initiatives of the Wireless RERC and Work RERC which are funded by NIDRR. CACP also has a new academic home within the School of Public Policy of the Ivan Allen College at the Georgia Institute of Technology, enabling synergistic collaborations in public policy, economics, technology, communications, and international affairs. Visit the CACP website www.cacp.gatech.edu to learn more about its varied policy activities. The Wireless RERC website remains www.wirelessrerc.org.


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  • Events

    SEATOA Annual Meeting Announced
    11.20.2005 – The Southeast Association of Telecommunications Officers & Advisors annual meeting and conference is scheduled for March 26-28, 2006 in Asheville, North Carolina. The conference is intended for persons in Georgia, North Carolina, South Carolina and Tennessee who are interested in the development, regulation and administration of cable television and telecommunications systems.
    [Source: SEATOA.org]


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  • Newsletter Info

    Center for Advanced Communications Policy
    Telecom/IT Policy Highlights Volume 5.10
    November 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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