In this special Winter issue of the TIPH, we call attention to some major developments taking place in telecommunications that will affect the way the public understands and uses these technologies and services. Perhaps the most important story of the last two months has been the FCC’s decision to approve the purchase of BellSouth by AT&T and permit the subsequent merger of the two companies. The new AT&T will be the largest telecommunications company in the United States. Not since before the forced dissolution of AT&T in 1984 into the Regional Operating Bell Companies, or Baby Bells, has the company been so large. The new AT&T, however, occupies a very different telecommunications landscape than that of “Ma Bell” some two decades ago. Though AT&T may face limited competition from other telephone operators, it is also challenged by cable and computer companies who play key roles in a telecommunications marketplace that includes television, broadband and wireless Internet service, as well as traditional wireline service.
Aside from developments that will change the relationships between telecommunications service providers and their consumers, a new session of Congress and subsequent shift in majorities to the Democrats may have far-reaching effects for telecommunications legislation and regulation in the coming months. The House and Senate Commerce Committees remain very interested in the issue of telecommunications reform, and it is reasonable to expect such legislation during this next session.
Finally, we continue tracking ongoing developments in telecommunications. One of our major stories from late last year, regarding spying and the fraudulent receipt of phone records by executives at HP, culminated in the passage of a new law. The “Telephone Records and Privacy Protection Act of 2006” makes pretexting a crime, and it represents another move by lawmakers to protect the privacy of Americans’ data and records.
[Bill Criminalizing Pretexting Signed Into Law]
01.12.2007 – On Friday, January 12, 2007, President Bush signed into law the “Telephone Records and Privacy Protection Act of 2006,” or TRAPP Act [Public Law No. 109-476]. The new law criminalizes the practice known as pretexting, the use of fraudulent or other deceptive tactics to persuade phone companies to reveal phone records intended to be confidential information. For example, it is now unlawful to pretend to be another person in order to gain access to that individual’s call history and records. Prior to the passage of the TRAPP Act, federal law prohibited pretexting to gain access to another individual’s financial information, and several states, such as California, outlawed telephone pretexting. The act criminalizes obtaining confidential phone records through making fraudulent statements, providing false documents to a telephone service provider, or fraudulently accessing customer accounts through the Internet. It also outlaws the unauthorized sale or transfer of confidential phone records information, or the receipt of such information with the knowledge that it was fraudulently obtained. Individuals convicted of pretexting to gain access to phone records face up to 10 years in prison and fines. The law does not apply to federal, state, or local law enforcement authorities.
The bill received overwhelming bipartisan support when the House of Representatives approved the measure in May with a 409-0 vote. However, the measure stalled in the Senate until the final day of the last session in December, partly because of disagreements over competing versions of the bill. Some senators had hoped for a more expansive bill that would have imposed more burdens on the phone companies to protect their subscribers’ data and would have allowed consumers the right to sue for damages.
For a summary of the new law and more information, please see [http://thomas.loc.gov/cgi-bin/bdquery/z?d109:HR04709:@@@L&summ2=m&]. [Sources: Library of Congress, Reuters, and CNET]
[Interoperable Emergency Communications Bills Introduced]
01.24.2007 – Two bills to improve the interoperability of equipment for emergency communications were introduced in both the House and Senate. On January 9, 2007, House Commerce Committee Chairman John Dingell (D-MI) introduced the “Improving Communications Interoperability Grant Program Act” [H.R. 338], which has been referred to the House Commerce Committee for consideration. About two weeks later, on January 24, 2007, Senate Commerce Committee Chairman Daniel Inouye (D-HI), along with four co-sponsors, introduced the “Interoperable Emergency Communications Act” [S. 385] in the Senate.
Both bills would provide the National Telecommunications and Information Administration (NTIA) with more guidance on the award of $1 billion in interoperable emergency communications grants to police, firemen, and emergency medical personnel made available in Section 4 of the “Call Home Act” [Public Law No. 109-459]. That act, which was signed into law by President Bush on December 22, 2006, provides reduced phone rates for Armed Forces personnel deployed overseas. As part of the “Call Home Act,” then Senate Commerce Committee Chair (now Co-Chair) Ted Stevens (R-AK) added language to speed the distribution of $1 billion for public safety communications interoperability made available as part of the Deficit Reduction Act of 2005 [Public Law No. 109-171] by mandating that the funds be distributed by September 30, 2007. The latest bill proposed by Inouye and his co-sponsors would not interfere with the deadline, but would provide guidance of the use of the funds by NTIA. In addition, the Senate bill would allow up to $100 million of the expedited $1 billion to be used to establish technology reserves that would assist emergency response agencies in pre-positioning communications equipment in states or regional facilities that can be rapidly activated in the event of a major emergency or national disaster.
A copy of the House bill is available at [http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.338:], and the Senate bill may be found at [http://thomas.loc.gov/cgi-bin/query/z?c110:S.385:]. [Sources: Library of Congress, House Commerce Committee, and Senate Commerce Committee]
[Shifts in Leadership for Senate and House Commerce Committees]
12.07.2006 – With the Democrats taking control of both chambers of Congress following the 2006 Congressional elections, there will be some important changes of leadership in the congressional committees charged with overseeing telecommunications issues. On December 7, 2006, Rep. John Dingell (D-MI) was selected by House Democrats to become Chairman of the House Commerce Committee for the 110th Congress. Dingell previously had been the ranking Democrat on the committee, and he now replaces former chairman Rep. Joe Barton (R-TX), who will remain on the House Commerce Committee as the ranking Republican. Rep. Edward Markey (D-MA) was selected as the Chairman of the Subcommittee on Telecommunications and the Internet, with Rep. Mike Doyle (D-PA) as Vice Chair and Rep. Fred Upton (R-MI) as Ranking Member. Dingell and Barton are both ex-officio members of the Subcommittee.
In the other chamber, Sen. Daniel Inouye (D-HI) became the new Chairman of the Senate Commerce Committee, switching places with colleague Sen. Ted Stevens (R-AK), who was named as the Ranking Member. As a sign of friendship and bipartisanship, Inouye named Stevens as Co-Chair of the Senate Commerce Committee, returning the same favor that Stevens extended to him during the 109th Congress. While mostly honorific, the Co-Chair title suggests the strong spirit of cooperation between the two senators in their work on the committee. Both Stevens and Inouye will play key roles in the oversight of the FCC and the development of any omnibus telecommunications reform bill. [Sources: House Commerce Committee, Senate Commerce Committee, and Associated Press]
[AT&T and BellSouth Merger Approved by Commission]
12.29.2006 – The FCC adopted a Memorandum Opinion and Order approving, with conditions, AT&T’s $85 billion purchase of BellSouth. The Commission’s action ends a seven month stalemate on the matter. At its open meeting on December 29, 2006, the FCC voted unanimously to approve AT&T’s purchase of BellSouth. Previously, Commission Republicans and Democrats had deadlocked over the matter, but 10 days before the vote, AT&T made a number of important concessions. Among these was a
two-year pledge to abide by “net neutrality” by not discriminating against Web firms in pricing or access to lines. AT&T also offered to provide stand-alone, or “naked,” Internet service at $19.95 for 30 months and freeze the rates for “special access” lines that serve some large businesses. The company also agreed to relinquish some of its high-speed Internet licenses to stimulate competition with other companies. With these and other concessions in tow, the FCC voted 5-0 to approve the acquisition.
Commissioner Robert McDowell had previously not participated in the FCC’s action on the matter because he had served as senior vice president and assistant general counsel for COMPTEL, a trade association representing telecommunications entrepreneurs, many in competition with AT&T and BellSouth. McDowell’s decision not to participate, citing a potential conflict of interest, led to a 2-2 deadlock between the other Republican and Democrat commissioners. However, on December 8, 2006, FCC General Counsel Samuel Feder cleared McDowell to vote in the proceeding, noting that McDowell no longer worked for the company in question and citing similar precedents.
AT&T’s merger with BellSouth will create the largest telecommunications firm in the United States, capitalized at $225 billion. It will dwarf its nearest competitor, Verizon Communications, which was created six years ago with the merger of GTE and Bell Atlantic. [Sources: New York Times, Washington Post, and FCC]
Comment Sought on Nationwide Broadband Public Safety Network
12.20.2006 – The FCC has adopted and released a Ninth Notice of Proposed Rulemaking [FCC 06-181] that proposes a national, centralized approach to maximizing public safety access to interoperable broadband spectrum in the 700 MHz spectrum. As noted in previous editions of the TIPH, the FCC is considering the best uses of the 24 MHz of public safety spectrum within the 700 MHz band (764-776 MHz and 794-806 MHz). Congress has suggested that this spectrum would be ideal for providing first responders with interoperable communications, and in response, the FCC announced that the public safety spectrum in the 700 MHz band should include standardization necessary to achieve nationwide interoperability, development of competitive equipment markets, and a degree of regional flexibility to meet the particular needs of regional communities. In its last NPRM on this issue, the Commission sought to determine whether this newly opened spectrum should be modified to accommodate broadband communications. This latest NPRM builds on the previous one to propose a comprehensive plan to promote the rapid deployment of a nationwide, interoperable, broadband public safety network that will improve emergency response.
The FCC makes seven proposals in this NPRM and seeks public comment on them. Among the most notable ones are the reallocation of 12 MHz of the 700 MHz public safety spectrum from wideband to broadband use, assignment of this spectrum to a single national public safety licensee, and the development of rules for the licensee. The Commission is also seeking to establish performance requirements for interoperability, build-out, preemption of commercial access, and robustness.
The Ninth NPRM is available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-181A1.txt] (MS Word and PDF formats also available). Comments are due within 45 days of the publication of the Notice in the Federal Register, and reply comments are due 60 days after publication in the Federal Register. [Source: FCC]
IP Captioned Telephone Service Eligible for Compensation from TRS Fund
01.11.2007 – The FCC has issued a Declaratory Ruling [FCC 06-182], which clarifies that Internet Protocol (IP) captioned telephone service qualifies as a type of telecommunications relay service (TRS) eligible for compensation from the Interstate TRS Fund. The Commission acted in response to a petition by Ultratec, Inc. that was widely supported by the disability community. Normally, captioned telephone calls involve the use of a two-line captioned telephone that lets callers with hearing impairments hear, to the extent possible, the other caller on one line, and read the captioned responses on another. IP captioned telephone service eliminates the need for a second PTSN line by substituting captioning over the Internet. In affirming the petition to consider IP captioned telephone service as a type of TRS, the FCC noted that the service should benefit consumers by giving them the flexibility of using a computer, PDA, or wireless device to make such calls, without having to rely on special telephone equipment. In addition, such services may benefit a wider group of people with disabilities. For example, individuals with low vision can take advantage of the large text, variable fonts, and variety of colors available when making calls through a computer.
The FCC ruling noted that the service must meet applicable TRS mandatory minimum standards, including that the service will be provided in a way that is automated and invisible to both parties making the calls, and that captions are delivered over an IP network that is fast enough to keep up with the speed of the other party’s speech. The FCC also stressed that it is granting Ultratec’s petition on an interim basis, as the Commission plans to address this service more fully in the near future.
A copy of the FCC’s Declaratory Ruling is available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-182A1.txt] (MS Word and PDF formats also available). [Source: FCC]
[Martin Appoints New Bureau Chiefs at FCC]
12.29.2006 and 01.08.2007 – FCC Chairman Kevin Martin appointed new chiefs for the Commission’s Wireless Telecommunications Bureau, Consumer and Governmental Affairs Bureau, Media Bureau, and International Bureau in late December 2006 and early January 2007. These new appointments will fill important positions within the FCC, whose staff is organized by function. The five commissioners of the FCC delegate responsibilities to the Commission’s seven operating Bureaus and ten Staff Offices. Each of the Bureaus at the FCC has responsibilities that include processing applications for licenses and other filings; analyzing complaints; conducting investigations; developing and implementing regulatory programs; and participating in hearings.
On December 29, 2006, Chairman Martin named Fred Campbell as Chief of the Wireless Telecommunications Bureau and Catherine Seidel as Chief of the Consumer and Governmental Affairs Bureau. Prior to his appointment, Campbell had served as Martin’s Legal Advisor for wireless issues, and worked as Attorney Advisor in the Wireline Competition Bureau. Seidel had been the Acting Chief of the Wireless Telecommunications Bureau since April 2005 and, before that, served as Deputy Bureau Chief and Chief of Staff for the Wireless Telecommunications Bureau. On January 8, 2007, Chairman Martin announced his intention to appoint Monica Shah Desai as the Media Bureau Chief and Helen Domenici as the International Bureau Chief. At the time of Martin’s announcement, Desai was serving as the chief of the Government and Consumer Affairs Bureau since April 2005 and worked with the FCC since 1999 in a variety of roles. Desai will be replacing outgoing Media Bureau Chief Donna Gregg, who will be serving as Senior Policy Advisor to the World Radiocommunication Conference. Prior to her prospective appointment as International Bureau Chief, Domenici had worked for five years in the Office of Science and Technology Policy (OSTP) in the Office of the President as Assistant Director for Telecommunications and Information Policy. [Source: FCC]
[Court of Appeals Upholds FCC VoIP Requirements for E-911 Service]
12.15.2006 – The U.S. Court of Appeals for the District of Columbia Circuit has issued its ruling in Nuvio v. FCC[No. 05-1248], finding against plaintiffs who were seeking a review of the FCC’s 2005 Voice over Internet Protocol (VoIP) E-911 Order. At issue was a First Report and Order and Notice of Proposed Rulemaking issued by the FCC in 2005 [FCC 05-116]. According to the Order, VoIP service providers had to ensure their customers would have Enhanced 911 service within 120 days. Nuvio, Inc. and other VoIP service providers argued that the Commission’s Order that service providers had to provide customer location and call back numbers for emergency service within 120 days of the Order’s effective date was arbitrary, capricious, and departed from precedent. In particular, the plaintiffs noted that comments received by the FCC did not support such rapid E-911 implementation and that wireline service providers were given more time to comply with similar orders to provide E-911 service.
The Court of Appeals disagreed with the three arguments of the plaintiffs, finding in favor of the FCC and essentially upholding the Order. Though the 120-day schedule might have been “aggressive,” the Court of Appeals found that the FCC’s decision to favor human lives was more important. As such, the D.C. Court of Appeals denied the plaintiff’s petitions for review.
The court’s opinion in this case may be found at [http://pacer.cadc.uscourts.gov/docs/common/opinions/200612/05-1248a.pdf] (PDF format only). [Sources: D.C. Circuit Court of Appeals and Rural Spectrum Scanner]
[Cable Industry Prices Report Released by FCC]
12.27.2006 – The FCC released its annual report on cable industry prices. Mandated by Congress in the Cable Television Consumer Protection and Competition Act of 1992, the FCC annually publishes a statistical report on the average rates for basic cable service, cable programming service, and equipment. The study also compares the average rates of cable operators subject to effective competition with those of operators not subject to effective competition. The report found that average monthly rates of cable service—including basic and expanded basic cable television service—increased by 5.2 percent, from $40.91 to $43.04 per month, in the 12-month period between January 1, 2004, and January 1, 2005. The average monthly price at the beginning of 2005 also represents a 93 percent increase since the period immediately before Congress’ passage of the Telecommunications Act of 1996.
More specifically, the study found that between January 1, 2004, and January 1, 2005, basic cable service rates rose 3.3 percent, from $13.84 to $14.30 per month. Expanded basic cable services, to which 84 percent of American cable consumers subscribe, increased by 6.2 percent, from $27.07 to $28.74. The report also revealed that for the 12-month period ending on January 1, 2005, the average monthly rate of basic and expanded basic cable programming services increased by 4.9 percent for cable operators in communities relieved from basic tier rate regulation (the “effective competition group”), versus 5.2 percent for the cable operators without a finding of effective competition (the “noncompetitive group”). The “noncompetitive group” charged an average of $43.33 per month for expanded basic service, 7.9 percent higher than the “effective competition group,” which charged $40.15 per month. The report also contains an econometric analysis of the data collected on cable industry prices. This analysis concludes that cable prices tend to be higher in local markets where cable providers have a higher share of the subscription video market. According to the FCC, this finding may “indicate the exercise of market power by dominant firms or may reflect higher costs to serve those markets.”
For a copy of the FCC report on cable industry prices, please see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-179A1.txt] (MS Word and PDF versions also available). [Source: FCC]
[Informal Consumer Inquiries and Complaints Report Released]
01.11.2007 – The FCC’s Consumer and Governmental Affairs Bureau has released its quarterly report on the top subject areas for inquiries and complaints processed by the Bureau for the third quarter of 2006. For wireless service, there was a slight rise in complaints from 4,050 in the second quarter to 4,149 in the third quarter of 2006. Billing and Rates was one of the top areas of complaints for the quarter. Meanwhile, wireline complaints and inquiries held steady or decreased during the third quarter. Finally, the number of Radio and Television Broadcasting complaints more than tripled from the previous quarter, increasing from 53,352 in the second quarter to 163,164 in the third quarter of 2006.
Regarding inquiries, there were decreases in both the wireless and wireline categories. Amateur License Information and Service Issue inquiries replaced Billing and Rates and Contract – Early Termination as the leading category for wireless inquiries. Inquiries for Radio and Television Broadcasting rose between the second and the third quarter, with Digital Television and Programming and Content as the leading categories of inquiry for this area. [Source: FCC]
[Universal Service Joint Board Releases Monitoring Report]
12.29.2006 – The Federal-State Joint Board on Universal Service has released its most recent monitoring report on Universal Service. The report provides information on the funds contributed by telephone companies in support of the Universal Service Fund (USF). As mandated by the Telecommunications Act of 1996, the USF promotes availability of quality service at just, reasonable, and affordable rates; increases access to advanced telecommunications services throughout the United States; and advances the availability of such services to all consumers, including those in low income, rural, insular, and high cost areas at rates that are reasonably comparable to those charged in urban areas. The USF serves its constituencies with four programs: 1) High Cost – support to ensure that consumers in all regions of the nation have access to and pay rates for telecommunications services that are reasonably comparative to those in urban areas; 2) Low Income – provision of discounts to make basic, local telephone service affordable for more than 7 million low income consumers; 3) Rural Health Care – support to provide reduced rates to rural healthcare providers for their telecommunications and Internet services, so they pay no more than urban counterparts; and 4) Schools and Libraries – a program to provide affordable telecommunications and Internet access service for schools and libraries.
According to the report, the USF disbursed about $6.5 billion to its programs in 2005. Of these funds, High Cost Support received 58.7 percent of the funding; Schools and Libraries Support received 28.6 percent; Low Income Support obtained 12.4 percent; and Rural Health Care Support received 0.4 percent from the USF.
A copy of the Joint Board’s USF monitoring report may be found at the FCC’s Monitoring Reports website at [http://www.fcc.gov/wcb/iatd/monitor.html]. [Source: FCC]
[AT&T to “De-brand” Cingular Wireless]
01.15.2006 – AT&T has undertaken one of the largest “de-branding” campaigns in history by converting its Cingular Wireless brand to the AT&T name. Beginning on January 15, 2007, the campaign is expected to last for the next five or six months. Though the effort is unprecedented in its scope, such moves are not entirely new to AT&T. Last year, the company undertook a $1 billion campaign to promote AT&T as the new name for SBC Communications shortly after that company was purchased by AT&T.
Cingular, the nation’s largest mobile carrier, had been jointly owned by AT&T, which held 60 percent of the company, and BellSouth, which held the remaining 40 percent. With the acquisition of BellSouth by AT&T on December 29, ownership of Cingular transferred completely to AT&T. Interestingly, the current drive to convert Cingular to AT&T comes as something of a reversal two years after BellSouth and SBC sponsored a campaign to convert the former AT&T Wireless into Cingular. [Sources: New York Times and Washington Post]
[EarthLink chosen to build City of Atlanta Municipal Wi-Fi Network]
01.25.2007 – The City of Atlanta has chosen EarthLink to construct a proposed municipal wireless Internet network for the city. According to plans for the Wi-Fi based network, the service would provide residents, businesses, and visitors with upload and download speeds of up to 1 Mbps. Further, the deal seeks to realize a mandate of the city to “support economic development,” “enhance quality of life through innovative public safety applications,” and “ensure digital inclusion.” In fulfilling the last of these goals, EarthLink and the City of Atlanta announced a plan to provide “qualifying residents” with discounted service. While details of the planned wireless network have yet to be fully disclosed, EarthLink is expected to construct the system at no cost to the city. Further, the company has expressed a commitment to open access by enabling multiple, competing providers to offer their services to consumers and businesses over the network. EarthLink has been active in developing municipal wireless networks in other localities, including Anaheim, California, and Philadelphia. [Sources:Atlanta Journal and Constitution and EarthLink]
[“Communications Marketplace” Focus of Senate Commerce Committee Hearing]
02.01.2007 – The Senate Commerce Committee will hold a hearing entitled “Assessing the Communications Marketplace: A View from the FCC” on February 1, 2007, in Senate Room 253 of the Capitol. The hearing will consider the FCC’s mandate to act in the public interest and how the Commission can continue to work in pursuit of this goal. The hearing is also expected to consider the current state of the communications marketplace, especially after the recent acquisition of BellSouth by AT&T, and how technology has fueled changes in the platforms for and delivery of telecommunications services. All five commissioners of the FCC are expected to testify at the hearing, and all have released prepared testimony in advance.
The hearing will be available via archived webcast at the Senate Commerce Committee’s website at [http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=1809]. The testimony of the FCC’s five commissioners and statement of Senate Commerce Committee Chairman Daniel Inouye (D-HI) are also available at the same website (PDF only). [Sources: Senate Commerce Committee and FCC]
[California State University, Northridge Center on Disabilities' 22nd Annual International Technology and Persons with Disabilities Conference]
03.19-24.2006 – California State University at Northridge’s (CSUN) Conference on International Technology and Persons with Disabilities will be held in Los Angeles, California, from March 19-24, 2007. The focus of the conference is to bring together key disability stakeholders to discuss all technologies and issues related to education, employment, and independent living of individuals with disabilities. For more about the conference, including registration information, see [http://www.csun.edu/cod/conf/].
[CTIA Wireless 2007 Conference]
03.27-29.2007 – CTIA-The Wireless Association® will be hosting its spring CTIA Wireless conference at the Orange County Convention Center in Orlando, Florida, on March 27-29, 2007. Billed as the “largest, most comprehensive show in the wireless industry,” the conference provides a venue for wireless providers, users, developers, buyers, and manufacturers to exchange ideas, create partnerships, and develop new collaborations. There will be more than 80 speakers present to lead the discussions comprising the conference’s educational program.
For more information about the CTIA Wireless 2007 conference, including how to register and a list of speakers, please visit [http://www.ctiawireless.com/].
[International Conference on Digital Government Research]
05.20-23.2007 – The Digital Government Society of North America will hold its 8th Annual International Conference on Digital Government Research at Sheraton Society Hill, in Philadelphia, on May 20-23, 2007. The conference provides a forum for the presentation and discussion of interdisciplinary research on digital government and its applications in diverse domains. Topics for this year’s conference include, but are not limited to, social science research and citizen interactions, computer science and information technology research to support government, and IT-enabled government operations and government application domains.
Interested participants are invited to submit research papers, as well as proposals for panels, system demonstrations, posters, and pre-conference tutorials and workshops. For more information, please consult the conference website at [http://www.dgsociety.org/call_for_papers.php].