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Telecom/IT Policy Highlights

Volume: 8.02
February 2008

Microsoft Word version / August, 2006 TiPH (175kB)

Adobe PDF version / August, 2006 TiPH (109kB)

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

    In this issue of the TIPH, we highlight important developments in telecommunications and information technology policy for the month of February. Congress and the President passed into law two bills that will extend and strengthen the “Do-Not-Call” registry mandated by the federal government to shield consumers from unwanted telemarketing phone calls. One of these, the “Do-Not-Call Registry Fee Extension Act of 2007” ensures ongoing funding for the registry by allowing the Federal Trade Commission (FTC) to collect necessary fees for the registry’s operation. Meanwhile, the “Do-Not-Call Improvement Act of 2007” ensures that consumers’ numbers remain on the Do-Not-Call registry unless users request their removal. Otherwise, phone numbers would have been automatically removed from the list after five years. In addition to these two new laws, Rep. Ed Markey (D-MA) introduced a new bill to ensure network neutrality as a federal policy. While previous attempts at net neutrality legislation have not been successful, Markey’s latest bill demonstrates that this issue remains an important one. Finally, Senate Commerce Committee Chairman Daniel Inouye (D-HI) and House Commerce Committee Chairman John D. Dingell (D-MI) sent a joint letter to the President requesting the establishment of an interagency task force to oversee the transition to digital television (DTV).

    While there was little activity in the courts this past month, regulatory agencies such as the FCC remained active. Among other things, the FCC adopted an Order that would extend its hearing aid compatibility rules for wireless manufacturers and service providers. The Commission also addressed newspaper/broadcast station ownership and the DTV transition in other rulemakings. Finally, the FCC collaborated with the National Telecommunications and Information Administration (NTIA) to initiate a spectrum sharing innovation test-bed, and with the U.S. Department of Agriculture (USDA) to launch a website on rural broadband.

    Finally, the TIPH highlights other stories of interest from February. Microsoft’s attempt to purchase Yahoo is a notable, ongoing story, as is Microsoft’s latest announcement at fostering openness of its technologies in the face of more stringent regulation by the European Commission. Late in the month, the four major wireless companies (AT&T Wireless, Verizon, Sprint, and T-Mobile) all announced unlimited, flat-rate plans that will certainly affect the wireless marketplace in the coming months.


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  • Legislative Activities

    Commerce Committee Chairs in Senate, House Urge DTV Task Force

    02.12.2008 – Sen. Daniel Inouye (D-HI), chairman of the Senate Commerce Committee, and Rep. John D. Dingell (D-MI), chairman of the House Commerce Committee, sent a joint letter to the President urging the establishment of an interagency task force to oversee the transition from analog to digital television. In their letter, the chairmen of the two committees asked the President to utilize the federal government’s resources to “help educate and prepare all Americans for this potentially disruptive change in our broadcasting system.” If the transition is not successful, Inouye and Dingell have warned, millions of Americans who rely on over-the-air broadcasts for their television service may be left out of the DTV transition.

    A 2005 Government Accountability Office (GAO) report found that 21 million homes—nearly one in five of all television-equipped households—rely on free, over the air broadcasts for television service. The task force proposed by Chairmen Inouye and Dingell would be led by the FCC, and it would focus on educating and preparing consumers for the DTV transition. The DTV transition will allow essential radio spectrum to be opened for interoperable emergency communications and allow for higher quality television pictures and sounds than analog technology currently in use. For a copy of Chairmen Inouye and Dingell’s letter to the President, please see [http://commerce.senate.gov/public/_files/InouyeDingellDTVlettertoPresident.pdf] (PDF format only). [Sources: House Commerce Committee and Senate Commerce Committee]

    “Do-Not-Call” Bills Passed into Law

    02.06.2008 – The President signed into law this month two bills passed by the House and Senate related to the “Do-Not-Call” Registry, which allows consumers to protect their telephone numbers from unsolicited phone calls by telemarketers. First, the President signed the “Do-Not-Call Registry Fee Extension Act of 2007” [Pub. Law No. 110-188] into law on February 15, 2008. This law amends the Do-Not-Call Implementation Act, which established the registry in 2003, to permanently allow the Federal Trade Commission (FTC) to collect fees needed to implement and enforce the provisions related to the “do-not-call” registry.

    In addition, the “Do-Not-Call Improvement Act of 2007” [Pub. Law No. 110-187] was signed into law by the president on the same day. This law amends existing do-not-call legislation to ensure that consumers’ phone numbers will not be removed from the registry except by individual request. Otherwise, phone numbers would have been automatically removed from the list after five years. [Source: Library of Congress]

    Network Neutrality Bill Introduced in House of Representatives

    02.13.2008 – Reps. Ed Markey (D-MA) and Chip Pickering (R-MS) have introduced the “Internet Freedom Preservation Act of 2008” [H.R. 5353], a bill that attempts to mandate net neutrality. Markey, who is currently the chairman of the Subcommittee on Telecommunications and the Internet in the House Commerce Committee, introduced similar bills in previous sessions of Congress, none of which have passed. He has also offered amendments to telecommunications reform bills during the last several sessions, but the Subcommittee has generally not considered these during their markup sessions.

    The current bill has two main sections, a policy statement affirming network neutrality as part of the United States’ broadband policy and an “Internet freedom assessment.” First, the bill would amend the Communications Act of 1934 to state that, “It is the policy of the United States to maintain the freedom. . .[of] broadband telecommunications networks, including the Internet, without unreasonable interference from or discrimination by network operators.” More substantive, however, is the bill’s call for an “Internet freedom assessment” that would require the FCC to undertake a proceeding regarding broadband services and customer rights. The Commission would be required to assess whether broadband network providers adhere to the FCC's 2005 Broadband Policy Statement (FCC 05-151), focusing on whether providers refrain from blocking, thwarting, or unreasonably interfering with the ability of consumers to access freely the Internet. The proposed legislation would require the FCC go beyond its usual notice and comment procedure and would require the Commission to hold a minimum of eight broadband summits around the nation to address the issue.

    For more information, including the text of the bill, please see [http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.5353:]. [Source: Library of Congress]


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  • Policy / Regulatory Activities

    Comment Dates for Third FNPRM on Digital Television Transition Announced

    02.04.2008 – The FCC’s Media Bureau has formally announced comment and reply comment dates for the Commission’s Third Report and Order and Third Further Notice of Proposed Rulemaking [FCC 07-170] regarding the carriage of broadcast signals following completion of the digital television transition. Adopted by the FCC in September 2007, this R&O and FNPRM requested comment on channel placement issues, the proper display format of a broadcast channel that switches between 4:3 and 16:9 display ratios, the applicability of the material degradation rules, the sufficiency of existing consumer notice provisions, and issues related to small cable operators.

    The Third FNPRM set deadlines of 30 days and 45 days, respectively, for the filing of comments and reply comments following publication in the Federal Register. Comments for the Third FNPRM will be due on March 3, 2008, and reply comments will be due on March 17, 2008. For a copy of the FCC’s Third R&O and Third FNPRM regarding signal carriage on digital television, please refer to [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-170A1.txt] (MS Word and PDF formats also available). [Source: FCC]

    Hearing Aid Compatibility Addressed in FCC Rulemaking

    02.28.2008 – The FCC released its First Report and Order [FCC 08-68] regarding hearing aid compatibility for wireless telephones. The Commission specifically addressed issues related to radio frequency (RF) interference reduction and inductive coupling capability with telephones operating in telecoil mode. Many of the rule changes were proposed by representatives of both the wireless industry and the deaf and hard of hearing community in a “Joint Consensus Plan,” on which the FCC sought comment in November 2007. This latest R&O expands the rules first adopted by the Commission in 2003 requiring wireless service providers and handset manufacturers to offer a certain number of digital wireless phone handset models that are compatible with the use of hearing aids.

    In this current R&O, the FCC adopted rules that require handset manufacturers to meet technical standards for RF interference reduction on one-third of the handset models they offer. Wireless providers must also meet the RF interference reduction standard either on a minimum of eight phones in 2008 (increasing to 10 in 2010) or on 50 percent of the models they offer to consumers. The Commission also modified its rules that currently require handset manufacturers and wireless carriers to offer at least two models with inductive coupling capability. Between now and 2011, handset manufacturers and service providers will be required to increase the number of models that meet inductive coupling capability standards. The FCC also adopted a handset “refresh” requirement, which means that phone manufacturers must ensure that a certain percentage of their hearing aid-compatible phones are newly issued that year. A comparable requirement was imposed on wireless service providers, who must now offer customers a range of hearing aid-compatible handsets with differing levels of functionality (e.g., operating capabilities, features offered, prices).

    In addition, the FCC referred to comments filed by the Rehabilitation Engineering Research Center on Wireless Technologies (Wireless RERC) in its rulemaking. Specifically, paragraph 76 notes that “given the surveys and studies submitted by Wireless RERC, and the comments of HIA, we encourage manufacturers and service providers, including new entrants, to develop and deploy wireless phones that meet M4 and T4 standards in order to give greater options to consumers with hearing loss. In our 2010 review, we will look closely at the extent to which these handsets are commercially available, whether achieving these standards is technically feasible for all interfaces and frequency bands, and the degree to which hearing aid technologies may have improved so as to make achieving such standards unnecessary.” Comments filed utilized data gathered by the Wireless RERC’s Survey of User Needs (SUN) with input from engineers and policy analysts.

    For more information, please see the FCC’s latest Report and Order on hearing aid compatibility at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-68A1.txt] (MS Word and PDF formats also available). [Source: FCC]

    Newspaper/Broadcast Cross-Ownership Rules Revised by FCC

    02.04.2008 – The FCC has publicly released a Report and Order [FCC 07-216], adopted in December 2007, which overturns the Commission’s 32-year absolute ban on newspaper/broadcast cross-ownership. Following the completion of its quadrennial review of broadcast ownership rules, the FCC has decided to craft an approach that would presumptively allow a newspaper to own one television station or one radio station in the 20 largest markets, subject to strict criteria and limitations. Under the new approach adopted by the FCC, a proposed newspaper/broadcast transaction is in the public interest if it meets the following test: 1) the market at issue is one of the 20 largest Nielsen Designated Market Areas (DMA); 2) the transaction involves the combination of only one major daily newspaper and only one television or radio station; 3) if the transaction involves a television station, at least eight independently owned and operating major media voices (defined to include major newspapers and full-power TV stations) would remain in the DMA following the transaction; and 4) if the transaction involves a television station, that station is not among the top four ranked stations in the DMA. Were these criteria to be met, then common ownership of a newspaper and broadcast station would be possible. Except for two limited circumstances, all other proposed transactions would be considered not in the public interest.

    Regarding the remaining broadcast ownership rules currently under review, the FCC determined that any further relaxation of ownership rules in the radio or television broadcast markets should not be allowed. The Commission decided to make no changes to the local television “duopoly” rule, the local radio ownership rule, local radio-television cross ownership rule and the dual network rule currently in effect. For a copy of the Report and Order just released, please see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-216A1.txt] (MS Word and PDF formats also available). [Source: FCC]

    Spectrum Sharing Innovation Test-Bed Designated by FCC, NTIA

    02.05.2008 – The FCC’s Office of Engineering and Technology has designated 10 Megahertz of spectrum in the 470-512 MHz band as a Spectrum Sharing Innovation Test-Bed and has issued procedures for interested parties to conduct technology tests in that bandwidth. The Test-Bed is designed to provide a venue for demonstrating techniques for better sharing between the federal government and non-federal radio users. The FCC’s decision coincides with a similar decision by the National Telecommunications and Information Administration (NTIA) to designate the 410-420 MHz band as a Test-Bed, as mandated by the President’s Spectrum Policy Initiative.

    In 2003, the President established the “Spectrum Policy Initiative” to initiate an examination of the existing legal and policy framework for spectrum management in order to better optimize the use of U.S. spectrum assets for federal and non-federal users. In June 2006, the Commission released a Public Notice discussing the goals, implementation and evaluation of a Test-Bed program, and seeking public comment. Concurrent with the release of the FCC Public Notice, NTIA released a Notice of Inquiry (NOI) also seeking comment on the creation of a Test-Bed. The comments filed with the FCC were generally supportive of a Test-Bed and wide-ranging, discussing many different bands, licensing approaches, and methodologies that could be used in conducting a Test-Bed study. The Commission supports NTIA in this Test-Bed initiative. After coordination discussions with NTIA, it concluded that a Test-Bed designation in the 470-512 MHz frequency band, which contains Television Broadcast Systems (TV channels 14-20) as well as Land Mobile Radio Systems, will provide the greatest benefits to meeting the goals set out in the President’s Spectrum Initiative. This band will allow for evaluation of adaptive radio equipment in the presence of additional radio services and provides a reasonable separation from the 410-420 MHz federal band to allow tests which pair the federal and non-federal frequency bands.

    For more information, please see the Public Notice at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-295A1.txt] (MS Word and PDF versions also available). [Sources: FCC and NTIA]

    Website on Rural Broadband Opportunities Launched by FCC, USDA

    02.01.2008 – The FCC and U.S. Department of Agriculture have launched a new, online resource for communities and organizations in rural America seeking to obtain broadband access. The “Broadband Opportunities for Rural America” website makes available the expertise and resources of the FCC and USDA in a single, easily-accessible location. The new website provides information on the different technology platforms that can be used to provide broadband service, how to access the spectrum necessary for the delivery of wireless broadband services, government funding for broadband initiatives, relevant FCC and USDA proceedings and initiatives, and data on broadband deployment. The site also provides information on how interested parties may locate companies licensed to provide wireless services in or near specific rural communities, as well as links to other government and private resources related to encouraging broadband opportunities in the rural United States.

    Please visit the FCC and USDA’s Broadband Opportunities for Rural America website at [http://wireless.fcc.gov/outreach/ruralbroadband]. [Source: FCC]

    Wireless RERC Submits Comments to The FCC

    In early February, the Rehabilitation Engineering Research Center on Wireless Technologies (Wireless RERC) filed comments to the FCC regarding the Commission’s Notice of Proposed Rulemaking [FCC 07-214] to establish a Commercial Mobile Alert System (CMAS). The comments addressed recommendations for expediting the availability of the CMAS to the American public; ways to encourage wireless carriers’ participation in CMAS; and ensuring that the elderly and people with disabilities are included in any planning for emergency alerting systems. Specific recommendations included prompt deployment of standards for commercial mobile service (CMS) providers to voluntarily participate in CMAS, the provision of incentives to encourage CMS provider participation, and absent significant progress in voluntary participation, seeking Congressional authority to mandate participation. The CMAS can potentially benefit millions of people with disabilities by providing accessible emergency alerts and information.

    To read the Wireless RERC’s complete filing please see [http://fjallfoss.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6519839358] (PDF only). [Sources: FCC and Wireless RERC)


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  • Studies / Reports

    Accessibility of Social Networking Focus of Survey

    02.29.2008 - TecAccess, an accessibility consultancy, and AbilityNet, a nonprofit dedicated to accessibility issues, are collaborating to research the accessibility of networking websites such as MySpace, FaceBook, Bebo and LinkedIn. The strategic partnership is also interested in photos and video sharing web sites such as YouTube, Flickr and PhotoBucket. The survey is ongoing, and those individuals interested in participating may visit [http://www.abilitynet.org.uk/socialnetworking] for more information. The survey is designed to take about 20 minutes to complete. Individuals who have difficulty completing the Web survey may contact AbilityNet at [accessibility@abilitynet.org.uk] for assistance. [Source: AbilityNet]

    Identity Theft Focus of Federal Trade Commission Report

    02.13.2008 – The Federal Trade Commission (FTC) has released a report highlighting consumer complaints related to such issues as identity theft during the year of 2007. Given the increasing reliance on Internet technologies for consumer purchases and other financial transactions, it probably comes as little surprise that identity theft has become one of the main concerns of the FTC.

    In its report, entitled “Consumer Fraud and Identity Theft Complaint Data: January -December 2007,” the FTC received over 800,000 Consumer Sentinel last year. Of these, 32 percent of these complaints related to identity theft. Credit card fraud was the most common form of identity theft, at 23 percent, followed by phone or utilities fraud (18%), employment fraud (14%), and bank fraud (13%). Aside from identity theft concerns, complaints related to Internet services accounted for five percent of the total complaints collected by the FTC, while computer equipment and software complaints and Internet auctions complaints accounted for three percent each. For more information, including a copy of the FTC report, please visit [http://www.ftc.gov/opa/2008/02/fraud.pdf] (PDF only). [Source: FTC]

    Report on State of Competition in Wireless Industry Released by FCC

    02.04.2008 – The FCC released its Twelfth Annual Report to Congress [FCC 08-28] on the state of competition in the mobile telephone industry. The Commission determined that there is effective competition in the wireless marketplace, and its report concludes that American consumers experience significant benefits, such as low prices, new technologies, improved service quality, and choice among providers, from that competition within the marketplace. In the analysis of its data, the FCC found that about 280 million people, or 99.8 percent of the U.S. population, have one or more different operators offering mobile telephone service in the census blocks in which they live. More than 95 percent of the U.S. population lives in areas with at least three wireless telephone service providers competing to provide service, while more than half the population lives in areas with at least five competing mobile telephone operators. Of those Americans living in rural areas, 99.3 percent, or 60.6 million people, have one or more different operators offering mobile telephone service in the rural counties in which they live. Approximately 82 percent of the U.S. population lives in census blocks with at least one mobile broadband provider offering service. During 2006, the number of mobile telephone subscribers in the United States rose from approximately 213 million to about 241.8 million, increasing the nationwide penetration rate to 80 percent.

    A copy of the FCC’s report may be found at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-28A1.pdf] (PDF only). [Source: FCC]


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  • Other Activities and Items of Interest

    Microsoft Makes Offer to Purchase Yahoo

    02.01.2008 – Microsoft has publicly announced its intentions to acquire Yahoo, Inc. on February 1, 2008. In an unsolicited bid to purchase the Internet services company, Microsoft proposed acquiring all outstanding shares of the Yahoo common stock for $31 per share, a total offer of $44.6 billion. On February 11, Yahoo’s board of directors voted to reject Microsoft’s offer, arguing that the proposal undervalued Yahoo. In response to the combination cash and stock offer proposed by Microsoft and valued at $31 per share, Yahoo board members claimed that the company is worth at least $40 per share. Microsoft claimed it would offer no more for the company, which has led analysts to speculate on the possibility of Microsoft undertaking a hostile takeover. [Sources: New York Times and Associated Press]

    Openness Program Announced by Microsoft, EU Levies Record Fines

    02.21.2008 – Microsoft has announced a plan to share more technical secrets with the rest of the software industry and its competitors. Announced at a company conference call and described by executives as a “major step” and “strategic shift” in the company’s business practices and handling of technical information, the Microsoft plan has four major components: 1) ensuring open connections, 2) promoting data portability, 3) enhancing support for industry standards, and 4) fostering more open engagement with customers and the industry, especially open source communities. The broader goal of the company is to bring Microsoft’s flagship products, the Windows operating system and Office productivity applications, further into the Internet era of computing. The company acknowledges that there needs to be a seamless transfer of documents, data, and programming code among desktop computers and the Internet, especially as end-users continue to shift from using software on a PC to utilizing more services on the World Wide Web.

    After fresh complaints from Microsoft’s competitors, the European antitrust regulators announced last month that they were opening new investigations of the company. This issue culminated on February 27 when the EU levied a record $1.35 billion fine against Microsoft. Legal battles with the European Commission have now cost Microsoft a total of $2.3 billion in fines. [Sources: New York Times and Associated Press]

    Unlimited, Flat-Rate Plans Offered by Four Major Wireless Carriers 02.19.2008 – The four major wireless carriers in the United States—Verizon, AT&T Wireless, T-Mobile, and Sprint Nextel—all announced this month that they would begin offering unlimited, flat-rate calling plans to their customers. On February 19, Verizon announced that it would enable customers to make unlimited calls in the U.S. under a $99.99-per-month flat rate plan. Verizon’s move was viewed as a bid for the company to gain more top tier customers, or “power users,” who currently make up 15 percent of the company’s consumers. The following day, AT&T Wireless and T-Mobile followed suit by introducing their own plans. About a week later, Sprint Nextel announced its “Simply Everything” plan that would provide customers with unlimited voice and mobile data, including Web surfing, e-mail, and text messaging, for $99.99 per month. [Sources: Washington Post, Fortune, CNET, and Reuters]


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  • Upcoming Events

    CTIA WIRELESS 2008 Conference

    04.01-03.2008 – CTIA – The Wireless Association, will host its annual CTIA WIRELESS 2008 conference on April 1-3, 2008, at the Las Vegas Convention Center, in Las Vegas, Nevada. This year’s conference is expected to include 1,200 exhibiting companies and several dozen industries represented. The conference is also expected to host over 40,000 attendees from 125 different counties. CTIA WIRELESS focuses on a number of areas related to wireless technologies and service, including broadband convergence, enterprise, advertising, social networking, and entertainment, and the conference also includes a number of educational sessions sponsored by CTIA. Keynote addresses will be given by Sir Richard Branson, founder and chairman of the Virgin Group and Virgin Mobile; Dan Hesse, president and CEO of Sprint Nextel; and Lowell McAdam, president and CEO of Verizon Wireless, among others.

    For more information, including registration, please visit the CTIA WIRELESS 2008 website at [http://www.ctiawireless.com/info/]. [Source: CTIA – The Wireless Association]

    CSUN Technologies & Persons with Disabilities Conference

    03.10-15.2008 – California State University – Northridge will host its 2008 Technologies & Persons with Disabilities Conference on March 10-15, 2008, in Los Angeles. The conference sessions will take place at the Los Angeles Airport Marriott and Renaissance Montura Hotel Los Angeles, both located near the Los Angeles International Airport. Now in its twenty-third year, the CSUN Technologies & Persons with Disabilities Conference is the longest-running and largest university sponsored conference of its kind.

    The hundreds of sessions offered represent a comprehensive variety of topics, tracks, research and products across all areas of disability and technology. In addition, full day and half-day pre-conference sessions will provide in-depth information in a variety of settings (hands-on, labs, participant interaction) from the leading experts in the fields of disability and AT. The topics will cover the latest innovations and issues facing practitioners and consumers in the areas of technology and disabilities. There is also an exhibitors’ hall, where conference attendees can view the latest products and services related to telecommunications, Internet and computer technologies, and assistive technologies for persons with disabilities.

    For more information, including registration, please visit the CSUN 2008 Technologies & Persons with Disabilities Conference website at [http://www.csun.edu/cod/conf/2008/]. [Source: California State University – Northridge]


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  • Newsletter Info

    Center for Advanced Communications Policy
    Telecom/IT Policy Highlights Volume 8.02
    February 2008
    Nathan W Moon, Editor

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