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Telecom/IT Policy Highlights

Volume: 6.01
December 2005 - January 2006

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

    The year ended without consensus as to how the 1996 Telecommunications Act should be modified, despite varying pieces of draft legislation put forward by members of Congress. Hurricanes Katrina and Rita, in addition to the war in Iraq, have in some ways preoccupied lawmakers, perhaps explaining delay in developing a new telecommunications act. The most recent piece of proposed telecom legislation is the "Digital Age Communications Act,” or DACA. The bill is noteworthy because it treats similar telecommunications services the same regardless of origin. It calls for the elimination of state and local franchising for video providers and proposes to overhaul the Universal Service Fund. The debate over provisions for Internet Protocol Television and the particulars of franchising agreements will likely become more heated in coming months as lawmakers strive to resolve these issues.

    So far this year the FCC has been very active. There is much discussion regarding the reconsolidation and auctioning of spectrum that can be used by emergency communications personnel and broadband Internet applications. Similar technological advances and spectral efficiencies allowing the FCC to recalibrate the spectrum are bolstering efforts to create municipal broadband networks, seen by many local policymakers as critical components of the economic well being of their communities. Finally, President Bush nominated Robert McDowell to fill the remainder of the unexpired term for the vacant Federal Communications Commission (FCC) commissioner seat.


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  • Policy / Legislative Activities

    Deadline for transition to digital television is official: February 18, 2009
    12.21.05 – The deadline for the digital television transition (DTV) was finalized as part of an omnibus spending bill, introduced as the “Deficit Reduction Omnibus Reconciliation Act of 2005” [S. 1932] by Senator Judd Gregg (R-NH). Proposed in one part of that omnibus bill, the “Digital Transition and Public Safety Act of 2005,” as of February 18, 2009, those consumers who rely on "over-the-air" television broadcasts will need a special adapter to receive television signals. The government has set aside funds to subsidize the cost of these digital tuners. The changeover will not affect most Americans because cable and satellite transmissions will be converted automatically, eliminating the need to purchase a digital tuner. The proposed date comes as a compromise between the Senate's preferred April 7, 2009 deadline and the House's December 31, 2008 cutoff date.

    A portion of the spectrum recovered in the transition will be given over to public safety entities, while the remainder will be auctioned off for commercial use. The Congressional Budget Office predicts the auctions will raise approximately $10 billion, but some experts think the auction could garner as much as $20 billion. More than $1.2 billion of the proceeds have been set aside to achieve equipment interoperability, fund programs associated with the WARN Act, and improve E-911 communications. Senate Commerce Committee Chairman Ted Stevens (R-AK) lauded the measure as a critical step in freeing up the necessary spectrum for first responders: "By providing our emergency response entities and broadcasters with a date certain for the digital transition, our first responders can move forward in ensuring that critical communication infrastructure is in place in the event of a natural disaster or terrorist attack."
    [Sources: U.S. Senate Committee on Commerce, Science & Transportation, C|NET, and The Washington Post]

    "Digital Age Communications Act" Introduced in House
    12.15.05 – Senators Jim DeMint (R-SC) and John Ensign (R-NV) have introduced the “Digital Age Communications Act” (S. 2113), or DACA, a bill designed to rewrite the Telecommunications Act of 1996. If signed into law, the Act would eliminate state and local franchising of cable and telecom systems and overhaul the Universal Service Fund (USF). Cornerstones of the Act outlined on DeMint's website include: • "Services that are alike from a consumer's perspective would be treated alike. For example, phone service, whether offered by a cable, land-line, or wireless company, would have to comply with the same regulations.”
    • "The Universal Service Program would be reformed to make all service providers contribute equally and make the distribution of the funds more efficient, transparent, and technologically neutral.”
    • "Cable television franchises would be phased out over 4 years.”
    • "Each state would continue to play an important role in enforcing federal rules and would retain the authority to protect consumers and manage public rights-of-way.”

    Rural carriers are hesitant about the bill because it seeks to impose a cap on the USF of $3.65 billion, which is about half the current fund of $7 billion. In addition, the bill delegates responsibility for spending USF monies to the states.
    [Sources: Library of Congress, Senator Jim DeMint, National Journal, and U.S. Telecom Association]

    Television Decency Hearing Held by Senate Committee
    01.19.06 – At the Senate Commerce Committee hearing on Television Decency, lawmakers expressed doubts about the viability of proposed family-oriented cable television packages. Packages fashioned by Comcast, Time Warner Cable, Cox Communications, and other cable and satellite television providers, at the behest of the FCC, were questioned by lawmakers because the packages do not include popular channels such as ESPN. Senator Frank Lautenberg (D-NJ) described the packages as "unmarketable." The packages seem designed for children, but not families. For example, Comcast’s “Family Tier” consists of channels targeted toward children, such as several Disney channels, two offerings by Nickelodeon, and several other “Kids” channels, as well as religious, home improvement, and news programming.

    Tiered television packages are a step toward empowering consumers, but an a la carte system—where consumers subscribe only to the channels they want—would give consumers even more control. Cable executives criticize the a la carte model, claiming it will increase costs and eliminate specialized channels, but FCC Chairman Kevin Martin suggested otherwise at the Open Forum on Decency held before the Senate Committee on Commerce, Science and Transportation in November. Ironically for cable companies who want to maintain the status quo, a lack of consumer acceptance for the family tiered packages increases the likelihood that the FCC will require a la carte offerings.

    The Senate Commerce Committee also held hearings earlier this month concerning the Broadcast and Audio Flag and Protecting Children on the Internet. More Senate Commerce Committee telecom hearings are slated for the near future.

    Chairman Martin’s statement before the Senate Committee on Commerce, Science, and Transportation: [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-262484A1.txt]. A transcript of the Senate Committee hearing is also at available at [http://commerce.senate.gov/pdf/decency2.pdf] (available only in PDF format).
    [Sources: FCC, U.S. Senate, Atlanta Journal-Constitution, Boston Globe, and Associated Press]


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  • Regulatory Activities

    Comment Sought Regarding Programs for Low-income Consumers
    01.10.06 – The FCC, in a Public Notice [DA 06-41], has stated that the Commission, in conjunction with the National Association of Regulatory Utility Commissioners and the National Association of State Utility Consumer Advocates, is accepting suggestions to determine how best to increase consumer awareness of the “Lifeline and Link-Up” telephone services. These programs that provide discounts to low-income households for the initial installation of phone service (Link-Up) and monthly phone bills (Lifeline). According to studies, some citizens who qualify for the programs are not aware of them. Responses are due by March 1, 2006, and a copy of the Public Notice is available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-41A1.txt].
    [Source: FCC]

    Commercial Spectrum Enhancement Act Bidding Procedures Issued
    01.21.06 – The FCC has released a Report & Order [FCC 06-4] adopting several changes to the Commission's competitive bidding rules. Some changes were developed in response to the “Commercial Spectrum Enhancement Act” [Pub. L. No. 108-494], while others were of the Commission's own volition in order to increase the efficacy of their auctions. Bands on the auction block in this instance range between 1710-1755 MHz and 2110-2155 MHz. The CSEA states that proceeds from the auction must cover the relocation costs for the government agencies that currently inhabit the spectrum. The sale can only be completed if its proceeds generate at least ten percent more than the cost to relocate the current tenants. Agencies using the bandwidth include the Departments of Defense, Justice, and ten other agencies. The estimated cost for the agencies to move into re-allocated bandwidth is $936 million.
    [Sources: FCC, Reuters]

    Flights to Have Broadband Internet, Cheaper Voice Calls
    12.9.2005 – The FCC released an Order on Reconsideration and Report and Order [FCC 05-202] that sets parameters for bidding on the 400 MHz and 800 MHz Air-Ground Radiotelephone spectrums. Bidding for the right to provide communications services such as high speed Internet and inexpensive voice calls will begin on May 10, 2006. Verizon operates existing airplane phones, but the price per minute ($4.99) is cost prohibitive for many consumers. The FCC has expressed concerns that allowing phone calls in jetliner cabins will impede passenger privacy, and will be need to be addressed during regulatory proceedings. In the report, the Commission authorized Space Data Corporation's SkySite technology for use in air-to-ground data transmission. The Arizona-based company operates a balloon-borne communications network in near space, about 20 miles above the earth. For the Department of Defense, the company deployed similar technology to increase handheld radio interoperability and battery life for handheld radios. Order on Reconsideration and Report and Order, see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-202A1.txt].
    [Sources: FCC, Reuters]

    Resale of Consumers' Telephone Records Investigated
    01.20.06 – In two separate orders, The FCC's Enforcement Bureau issued citations to Data Find Solutions, Inc. and 1st Source Information Specialists, Inc. for failing to produce documents and information pertaining to their obtaining and reselling of individuals' phone records from telecommunications carriers without the individuals' consent or knowledge. Data Find Solutions and 1st Source Information received more bad news several days later when a federal judge in New Jersey granted Verizon Wireless a preliminary injunction against the web-based firms, owners of www.locatecell.com and similar websites.

    Also under investigation by the FCC is whether or not phone companies followed rules designed to prevent valuable data from falling into the hands of unauthorized parties. The FCC requires that operating procedures for telecommunications companies must be certified every year. In a letter to the FCC, leaders of the House Committee on Energy & Commerce asked the FCC to provide copies of the most recent annual certifications of the five largest wireline and the five largest wireless telecommunications companies. Rep. Edward Markey (D-MA) is the sponsor of two bills designed to protect consumer privacy: the “Information Protection and Security Act” [H.R. 1080] and the “Social Security Number Protection Act” [H.R. 1078].

    Copies of the two FCC citations are available at
    [http://www.fcc.gov/eb/Orders/2006/DA-06-122A1.html] (Data Find Solutions) and [http://www.fcc.gov/eb/Orders/2006/DA-06-124A1.html] (1st Source Information). The House Committee’s letter to the FCC is available at Rep. Markey’s website, at [http://markey.house.gov/docs/privacy/iss_privacy_ltr060123.pdf] (PDF format only).
    [Sources: FCC, Rep. Edward Markey]

    Spectrum Needs for Emergency Personnel Assessed in Report
    12.19.05 – The FCC released a report to Congress concerning short-term and long-term needs of federal, state, and local emergency response providers for additional portions of the electromagnetic spectrum. Submitted pursuant to the “Intelligence Reform Act” [Pub. L. No. 108-458], the report was influenced by the effects of Hurricanes Katrina and Rita.

    Of central importance to the report is the 700 MHz band; ideal for first-responder wireless communications because signals sent over the frequency can penetrate walls and travel long distances. The transition of analog television to digital television (DTV), expected by February 17, 2009, will clear 24 MHz of the Upper 700 MHz band for public safety services. The FCC will auction the remaining 36 MHz of the Upper 700 MHz Band for commercial services. Many public safety entities have expressed concern that the allotted 24 MHz will not be sufficient for broadband data applications. New York City, for example, advocates an allocation of an additional 10 MHz in the 700 MHz band.

    The Commission promised to examine whether the current allocation of 24 MHz of spectrum in the 700 MHz band will be enough to accommodate broadband applications for public safety officials. The report also cites opportunities for greater spectral efficiencies and other technological advances that will help meet short and long-term needs of emergency response providers. A copy of the report is available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-41A1.txt].
    [Sources: FCC, Government Technology]

    Universal Service Support Mechanisms for Non-Rural Carriers
    12.09.05 – In a Notice of Proposed Rulemaking [FCC 05-205], the FCC seeks comments regarding universal service support for non-rural carriers serving high-cost areas. Among the topics to be explored by the FCC according to this NPRM:
    • "How to reasonably define the statutory terms "sufficient" and "reasonably comparable" in light of holdings by the U.S. Court of Appeals for the Tenth Circuit in Qwest Corp. v. FCC."
    • "The appropriate design for a new high-cost support mechanism for non-rural carriers, including whether to use a rate-based rather than a cost-based approach.
    • "The tentative conclusion that the FCC should establish a new interim support mechanism for non-rural insular areas as requested by Puerto Rico Telephone Company."

    A copy of the NPRM is available at
    [ http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-205A1.txt]. The deadline for comments is February 10, 2006, and deadline for reply comments is March 12, 2006.
    [Source: FCC]


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  • Judicial Activities

    Class Action Lawsuit Filed Against AT&T for NSA Wiretapping
    01.31.06 – The Electronic Frontier Foundation (EFF) has filed a complaint with the U.S. District Court for the Northern District of California alleging that AT&T illegally wiretapped and data-mined Americans' communications by dint of their cooperation with the National Security Agency. At issue is how the court might define word “unreasonable” as it appears in the Fourth Amendment pertaining to “unreasonable searches and seizures,” the extent of the President's power to conduct military operations in wartime, and most immediately, whether or not AT&T broke the law by acting at the behest of the government. The suit also addresses the legality of conducting warrantless searches when a warrant for wiretapping can be obtained up to 72 hours after wiretapping has commenced. The last issue is perhaps most salient because there have been approximately 19,000 Foreign Intelligence Surveillance Act applications for permission to wiretap within the last 25 years. Only four of these applications were rejected by the court.
    [Sources: New York Times, Slashdot, Electronic Frontier Foundation]


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  • Research / Reports

    Report on Universal Service Released by Federal-State Joint Board
    12.29.05 – The Federal-State Joint Board on Universal Service released a report via the FCC's Wireline Competition Bureau that addresses certain universal service support mechanisms, which amounted to nearly $5.7 billion in 2004. In that year, disbursements among the four categories of universal service mechanisms were: 61.5 percent for high-cost support; 24.8 percent for schools and library support; 13.4 percent for low-income support; and 0.3 percent for rural health care support. The report also includes data concerning rates and price indices, network usage, and quality of service. The report is available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-262986A1.txt].
    [Source: FCC]

    Spectrum Report Issued by GAO
    12.20.05 – The United States' Government Accountability Office (GAO) released a telecommunications report [GAO-06-236] “Strong Support for Extending FCC's Auction Authority Exists, but Little Agreement on Other Options to Improve Efficient Use of Spectrum” concerning the use of radio-frequency spectrum, especially frequencies that will be freed by digital television legislation. The report recommends legislation authorizing FCC jurisdiction over the auction of radio frequencies. In addition, the report considers two models to enhance use of existing spectrum: the property-rights model and the open access, or commons model. In the first model, companies would own spectrum and use it as they see fit. The second model would allow an unlimited number of unlicensed users to share the spectrum. Cellular carriers abide by the property-rights paradigm whereas protocols for WiFi technology are based on the commons model. GAO surveyed 20 panelists regarding the competing models. Nine favored a move toward the property-rights model, six favored a move toward the commons model, and five favored a mix between the two.
    A copy of the GAO’s report is available at [http://www.gao.gov/htext/d06236.html].
    [Source: GAO, National Journal]


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  • Items of Interest

    International Consumer Electronics Show Recap
    01.07.06 – In a keynote address at the International Consumer Electronics Show Consumer Electronics Association President and CEO Gary Shapiro reported total industry sales for 2005 were just under $126 billion and that industry sales were projected to be $135 billion in 2006. Shapiro's address also highlighted various principles necessary for the industry to thrive. Perhaps most notable is the call to promote broadband competition and ensure net neutrality. Mr. Shapiro said, "We must be sure consumers also have unfettered access to content, services and applications. Innovation will flourish only if device manufacturers who develop 'edge technologies' have certainty that their products and services, like new IP-based video, can connect to the Internet."

    The global market for Internet Protocol television is expected to reach $1 billion by 2009 and has the potential to make appointment based television obsolete. Therefore it's no wonder this technology took center stage at the trade show. Yahoo and Google announced new Internet programming initiatives while hardware companies such as Intel presented new products designed to push videos sent via the Web into the living room. Microsoft likewise announced plans to take its software from the home office into the living room.
    [Sources: Consumer Electronics Association, New York Times]

    Mobile WiMax Standard Approved by IEEE
    12.08.05 – The Institute of Electrical and Electronics Engineers (IEEE) officially codified specifications for mobile WiMax technology, which will promote the development of interoperable products. On a related note, the IEEE is also considering a faster WiFi standard, 802.11n. The first draft of the standard was approved in January and increases the potential data access speed possible via wireless network points compared to current 802.11g technology. Based on a technology called MIMO (multiple-in, multiple-out), the chips use multiple antennas and are equipped to handle more than one data signal at a time.
    [Sources: Light Reading, Telecommunications Online, ZDNet]

    Municipal WiFi Projects to Increase in 2006
    01.03.06 – Deployment of municipal WiFi and WiMax networks are expected to flourish in 2006. The prospect of affordable broadband access for citizens and efficiencies to be gleaned by municipal field workers (police officers, meter readers, and emergency personnel, among others) are incentive enough for towns and cities to erect their own wireless networks. Backing for municipal fiber optic or other wireline networks has not gained much steam in light of the scalability of wireless networks. For example, in rural towns where neither cable modems nor DSL access is available, wireless networks have proven viable. Such a boom does not bode well for incumbent service providers. But Intel, Cisco, Dell, IBM, SAP and others are advocates of community broadband initiatives.

    Local officials increasingly look to affordable broadband as crucial to their cities' economic development. In December, the City Council of New York passed legislation creating a special commission to advise Mayor Michael Bloomberg and the city council on how best to offer broadband Internet access to citizens throughout the city. The United Kingdom also announced plans for citywide WiFi networks. In March 2006 WiFi networks will be launched in Birmingham, Cambridge, Edinburgh, Leeds, Liverpool, Manchester, Nottingham, and Oxford, along with the London boroughs of Kensington, Chelsea, Camden, and Islington.
    [Sources: Telephony Online, Intel, ZDNet, and News.com]


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  • Events

    2006 Alliance for Community Media International Conference and Trade Show
    The Alliance for Community Media (ACM) 2006 International Conference and Trade Show will be held in Boston, Massachusetts July 6-9. The Alliance is noted for working with the FCC, Congress, state legislatures and other regulatory agencies to ensure that all people regardless of race, age, gender, disability, religion or economic status have access to technology, especially Public, Educational and Governmental (PEG) television channels. The ACM’s conference website is available at [http://acmboston.org/].
    [Source: Alliance For Community Media]

    RFID Journal LIVE! 2006: Putting RFID to Work
    The RFID Journal is sponsoring a conference and exhibition from May 1-3, 2006 at the MGM Grand in Las Vegas. Industries that will be represented include: Retail and Consumer Goods, Health Care and Pharmaceutical, Defense and Aerospace, Manufacturing, and Transportation and Logistics. For more information, please see the RFID Journal’s website at [http://www.rfidjournal.com/live2006/].
    [Source: RFID Journal]


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  • Newsletter Info

    Center for Advanced Communications Policy
    Telecom/IT Policy Highlights Volume 6.01
    December 2005 / January 2006
    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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