In this month’s TIPH we call attention to ongoing efforts in Congress, regulatory agencies, and the courts to address the nation’s emergency communications infrastructure. In support of 911 call services, the House of Representatives adopted a resolution this month to designate one month out of the year as “National 9-1-1 Education Month,” during which a focus on training and other activities would be made by parents, educators, and local and state officials. As part of its efforts to facilitate a more robust emergency communications infrastructure, the FCC announced the winners of its 700 MHz auction this month. Part of the spectrum opened by the digital television (DTV) transition is expected to be devoted to the deployment of emergency communications. In addition, the National Telecommunications and Information Administration (NTIA) released its federal strategic spectrum plan, which addresses the use of the nation’s spectrum by the federal government over the next five years. The deployment of spectrum for emergency uses is a major priority outlined in the NTIA’s report. Finally, the courts grappled this month with the implications of policies to bolster emergency communications when it decided to grant an emergency stay sought by wireless carriers against the FCC’s latest Enhanced 911 (E-911) service rules.
In addition to emergency communications, legislators also addressed the federal telework program this month with a House bill, the “Telework Improvements Act of 2007,” to expand teleworking within the federal government. Also, a Government Accountability Office (GAO) report on the performance of the FCC’s Enforcement Bureau has prompted calls by the House Commerce Committee’s leadership for renewed oversight of the Commission’s activities. Meanwhile, regulators concerned themselves with the ongoing educational efforts regarding the DTV transition. Finally, the FCC adopted an important rulemaking this month that outlaws exclusive contracts for telecommunications service within apartment buildings.
House Commerce Committee Responds to GAO Report on FCC Enforcement
03.13.2008 – The Government Accountability Office (GAO) released a report entitled “Telecommunications: FCC Has Made Some Progress in the Management of Its Enforcement Program but Faces Limitations, and Additional Actions Are Needed,” which discusses the effectiveness of the Commission’s Enforcement Bureau. The GAO report found that between 2003 and 2006, the Enforcement Bureau conducted 46,000 investigations in response to complaints it had received directly, complaints received by the Consumer and Governmental Affairs Bureau, audits and inspections, and self-initiated inquiries. As of December 2006, the Enforcement Bureau had closed 39,000 of the 46,000 investigations. In its report, the GAO contends that between 2003 and 2006, about nine percent, or almost 3,400, of these investigations were closed with an enforcement action, and approximately 83 percent, or about 32,200, were closed with no enforcement action taken.
In response to the GAO report, Kris Monteith, Chief of the Enforcement Bureau, released a 109-page response arguing that “the GAO report contains several errors that detract from its utility.” Furthermore, she underscored that the FCC remains committed to strong enforcement action to protect consumers and uphold the provisions of the Communications Act. FCC Chairman Kevin Martin in a separate letter expressed his appreciation for the GAO’s research and welcomed its recommendations. Martin observed that since becoming chairman, the Enforcement Bureau is responding to 100 percent of consumer complaints and that under his chairmanship, the FCC has collected a record amount of fines, forfeitures, and consent decree payments.
GAO report at: [http://www.gao.gov/new.items/d08125.pdf] (PDF only). Enforcement Bureau Chief Kris Monteith’s response: [http://www.fcc.gov/GAO_report_response.pdf]. [Sources: GAO, FCC, and House Commerce Committee]
“National 9-1-1 Education Month” Resolution Passed by House
03.10.2008 – By a vote of 381-0, the House of Representatives passed a resolution to designate an appropriate month as “National 9-1-1 Education Month” [H.Res. 537]. Introduced by Rep. Anna Eshoo (D-CA) and 57 other co-sponsors, the resolution requests that the President designate one month out of the year as National 9-1-1 Education Month, and it calls upon government officials, parents, teachers, and others to observe it with the “appropriate ceremonies, training events, and activities.” Among other goals stated in the resolution, the education of children on the proper uses of 911 services in emergencies is particularly important.
A copy of the House resolution may be found at: [http://thomas.loc.gov/cgi-bin/query/D?c110:2:./temp/~c110oWKuPk::]. [Source: Library of Congress]
Telework Bill Approved by House Committee
03.13.2008 – The House of Representatives’ Committee on Oversight and Government Reform approved the “Telework Improvements Act of 2007” [H.R. 4106] at its latest
mark-up session on March 13, 2008. Introduced by Reps. Danny K. Davis (D-IL), John Sarbanes (D-MD), and eight other co-sponsors on November 7, 2007, the bill requires the head of each agency to establish a policy that allows authorized employees to telework at least 20 percent of the time during each two-week period. The proposed legislation would also require the General Services Administration, in consultation with the Office of Personnel Management, to help implement a telework policy by providing specific advice, assistance, and guidance to agencies. In response, every agency would also be required to appoint a telework managing officer, and the comptroller general would submit an annual report to Congress rating agencies on their telework practices.
Prior to the Committee’s approval, Chairman Henry Waxman (D-CA) substituted language that would require mission-critical employees at each agency to be equipped to telework. In addition, Rep. Tom Davis (R-VA), the Committee’s ranking member, added an amendment that would allow agencies to have their chief human capital officers or an appointed career employee fill the role of telework manager if no telework managing officer is appointed. The bill now moves to the floor of the House for a full vote. In November, the Senate’s Committee on Homeland Security and Governmental Affairs approved a similar bill, the “Telework Enhancement Act of 2007” (S. 1000), introduced by Sen. Ted Stevens (R-AK). That bill is expected to reach the floor for a vote by the full Senate once the Committee has issued its report on the bill.
For a copy of the House telework bill, please see [http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.4106:]. A copy of the Senate telework bill is available at [http://thomas.loc.gov/cgi-bin/query/z?c110:S.1000:]. [Sources: Library of Congress, House Oversight and Government Reform Committee, Senate Homeland Security and Governmental Affairs Committee, and Federal Computer Week]
DTV Consumer Education Order Adopted by FCC
03.03.2008 – The FCC has adopted and released a Report and Order [FCC 08-56] to assist in educating American consumers about the transition from analog to digital television (DTV), a process to be completed on February 17, 2009. Also known as the DTV Consumer Education Order, the Commission’s R&O requires television broadcasters, Multi-Channel Video Programming Distributors (MVPDs), telecommunications carriers, retailers, and manufacturers to promote awareness of the pending transition to DTV, with an emphasis on providing consumers clear and correct information about the process and how it will affect them.
In order to make the transition from analog to digital broadcasting as smooth as possible, the FCC has been working with representatives from industry, public interest groups, other government entities, and Congress. Some of the specific rules adopted in this R&O to accomplish this goal include provisions that broadcasters must provide information on-air to inform viewers about the transition, MVPDs must include monthly notices about the DTV transition in their customer billing statements, and manufacturers of television
receivers and related devices must provide notice to consumers of the transition’s impact on that equipment. Furthermore, telecommunications companies participating in the Low Income Federal Universal Service Program must provide notice of the transition in their monthly customer billing statements to their low income customers and potential customers. In its R&O, the FCC has also indicated that it will assist the National Telecommunications and Information Administration (NTIA) in ensuring that retailers are fulfilling their commitment to the converter box program. Finally, the Commission has mandated that DTV.gov partners and winners of the 700 MHz spectrum auction, which will reallocate the bandwidth made available by the transition, must provide the Commission with regular updates on their consumer education efforts.
For a copy of the FCC’s R&O on DTV consumer education, please see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-56A1.txt] (MS Word and PDF versions also available). [Source: FCC]
Exclusive Contracts for Telecom Service in Apartment Buildings Banned by FCC
03.19.2008 – The FCC has adopted and released a Report and Order [FCC 08-87] that bans carriers from entering into contracts for the provision of telecommunications service in residential apartment buildings. Furthermore, the Commission prohibits the enforcement of any such existing contracts between carriers and apartment building owners or managers. The FCC has determined that exclusive agreements between carriers and building owners hurt consumers and harm competition, and that such contracts provide little evidence of countervailing benefits. In particular, the Commission contends that exclusive contracts have blocked access by consumers to competitive and popular “triple-play” offerings of voice, video, and broadband. In adopting its R&O, the FCC believes that permitting competitive telecommunications services will help provide consumers with increased access to and choice of such providers.
The FCC’s latest action builds upon previous efforts to broaden competition for communications services in apartment buildings and other multiple tenant environments (MTEs). In 2007, the Commission banned exclusive contracts for video (e.g. cable or satellite television) services in residential apartment buildings. This latest order extends the FCC’s efforts to achieve regulatory parity between telecommunications and video service providers in the increasingly competitive market for bundled services. For a copy of the R&O banning exclusive contracts for telecommunications services in apartment buildings see: [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-87A1.txt] (MS Word and PDF versions also available). [Source: FCC]
FCC Delinks Upper 700 MHz D Block from Other Blocks in Spectrum Auction
03.20.2008 – The FCC adopted and released an Order [FCC 08-91] that de-links the Upper 700 MHz D Block from the other blocks of bandwidth being offered in the Commission’s 700 MHz Auction (Auction 73), which closed on March 18, 2008. The D Block did not meet the reserve price of $1.3 billion established before the auction, while the other blocks offered for sale—the A, B, C, and E Blocks—all met and exceeded their reserves. Because the FCC is committed to making the 700 MHz band available for use as quickly as possible following the completion of the DTV transition on February 17,
2009, it has taken this de-linking action in order to move forward with the blocks of spectrum that did meet their reserve prices (see below story). The FCC decided that it will not re-offer the D Block immediately in the upcoming Auction 76, but the Commission will consider its options for how to license this spectrum in the future. In July 2007, the FCC adopted rules for how the 700 MHz Band spectrum to be vacated by analog television broadcasting would be used. The Commission planned for the creation of a 10-megahertz license in the D Block to be part of a 700 MHz Public Safety/Private Partnership with the adjacent Public Safety Broadband Licensee. The 700 MHz Public Safety/Private Partnership was designed to achieve the public policy goal of helping to solve public safety’s interoperability problems and allow police, fire, and other first responders to better communicate with one another in times of emergency. In its Order, the FCC stated that it remains committed to this goal.
For a copy of the FCC’s Order de-linking the Upper 700 MHz D Block from the other four blocks see: [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-91A1.txt] (MS Word and PDF versions also available). [Source: FCC]
Federal Strategic Spectrum Plan Released by NTIA
03.20.2008 – The Commerce Department’s NTIA has released a comprehensive report on the federal government’s use of the nation’s airwaves, based upon submissions of spectrum plans from 15 federal agencies. Entitled “The Federal Strategic Spectrum Plan,” the NTIA report is a key component of the President’s 21st Century Spectrum Policy Initiative for improving the management of spectrum used by federal agencies. The report provides extensive data on federal spectrum use and plans, including frequency bands, radiocommunication services, and spectrum-dependent systems.
In addition to outlining the use of bandwidth by the federal government, the NTIA report contains several recommendations that federal agencies should work to achieve over the next five years. These include 1) use of commercial services where feasible; 2) implementation of “smart” radio technologies to improve more dynamic access to needed frequencies, wherever and whenever needed; 3) working with NTIA on identifying economic and other incentives to promote more efficient use of spectrum; 4) facilitating sharing among federal users and between federal and non-federal users; 5) improvement of interoperability among public safety agencies; and 6) ensuring spectrum support for continuity of government operations. Within the five-year timeframe, NTIA plans to upgrade the federal spectrum management system; consider possible user fees for federal use of spectrum; develop improved interference models for optimizing spectrum use; implement methods to better forecast future requirements; and continue to promote interagency and federal/private sector coordination.
The plan was formulated using the agency-specific strategic spectrum plans from 15 agencies: the Departments of Agriculture; Commerce; Defense; Energy; Homeland Security; Interior; Justice; State; Transportation; Treasury; Veterans Affairs; the United States Postal Service; the Broadcasting Board of Governors; the National Aeronautics and Space Administration; and the National Science Foundation. For a copy of the report see [http://www.ntia.doc.gov/reports/2008/FederalStrategicSpectrumPlan2008.pdf] (PDF format only). [Source: NTIA]
Results of 700 MHz Spectrum Auction Announced by FCC
03.21.2008 – The FCC announced the winners in Auction 73, which pertains to the 700 MHz band of the broadcast spectrum to be vacated after the transition from analog to digital television broadcasting is completed. The two major winners in the auction were Verizon Wireless and AT&T. Verizon’s bids totaled over $9 billion, while AT&T’s were over $6 billion. In total, the FCC announced that it had raised $19 billion in this auction.
Despite being dominated by the major wireless telecommunications firms in the nation, the auction also ended with a number of winning bids by smaller firms. FCC chairman Kevin Martin noted in a statement that a “bidder other than a nationwide incumbent won a license in every market. As a result of the 700 MHz Auction, there is the potential for an additional wireless ‘third-pipe’ in every market across the nation. Additionally, 99 bidders, other than the nationwide wireless incumbents, won 754 licenses -- representing approximately 69 percent of the 1090 licenses sold in the 700 MHz auction. The Auction therefore drew wide-ranging interest from a number of new players.” One such example cited by Chairman Martin was the case of Frontier Wireless, a new entrant that won 168 licenses in the E Block.
For more information, please see the FCC’s Public Notice at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-595A1.txt] and Attachment A at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-595A2.txt] (MS Word and PDF versions also available) announcing the winners of the auction. As noted in the above story, the FCC de-linked the D Block from this auction in order announce the winners. [Source: FCC]
Court of Appeals to Hear Arguments in Case Involving Comcast, FCC
02.29.2008 – The U.S. Court of Appeals for the D.C. Circuit has agreed to hear arguments in the case of Comcast v. FCC. At issue is a Memorandum Opinion and Order [07-127] issued by the FCC in September 2007 that denied Comcast’s petition for a waiver of the integration ban for set top boxes. As part of the implementation of the Telecommunications Act of 1996, the FCC ruled that cable operators may no longer place into service new navigation devices (set-top boxes) that perform both conditional access and other functions in a single integrated device. The purpose of the integration ban was to assure reliance by both cable operators and consumer electronics manufacturers on a common separated security solution. This “common reliance” is necessary to achieve the broader goal of giving consumers the option of purchasing navigation devices from sources other than their cable company, as mandated by Section 629.
In its ruling, the District Court upheld the FCC’s MO&O. Comcast is appealing that decision to the Court of Appeals. In a similar case, the D.C. Circuit Court of Appeals, in 2006, rejected arguments of the cable industry regarding the FCC's implementation of the integration ban. [Source: D.C. Circuit Court of Appeals]
Appeals Court Grants Stay of FCC Wireless E-911 Mandates
03.10.2008 – The U.S. Court of Appeals for the D.C. Circuit has granted wireless carriers’ motion for a stay of the Commission’s recent wireless Enhanced 911 (E-911) location accuracy requirements. At issue is the FCC’s 2007 orders mandating increased accuracy of location tracking of wireless devices, including Voice over Internet Protocol (VoIP) telephone service. In the case of Rural Cellular Association and T-Mobile v. FCC and The United States of America [No. 08-1069] and other consolidated cases, the U.S. Court of Appeals for the D.C. Circuit considered arguments made by AT&T, Verizon, Sprint-Nextel, T-Mobile, and Rural Cellular Association that the FCC’s orders are procedurally flawed.
Plaintiffs contend that the FCC failed to comply with the Administrative Procedure Act by imposing requirements for which the FCC has shown no support. The companies also claim that they are unable to comply with the order, and would be irreparably harmed by the FCC’s mandate. In explaining its decision to grant the stay, the Court of Appeals cited “procedural irregularities” made by the FCC. In addition, the Court believed that the wireless carriers were likely to succeed in their challenge of the FCC order.
For a copy of the FCC’s opposition to the plaintiffs’ emergency motion for stay, please see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-280770A1.pdf]. [Sources: Reuters, D.C. Circuit Court of Appeals, FCC, and Rural Cellular Association]
Supreme Court Lets Stand Courts of Appeals’ Telecom Decisions
03.03.2008 – The U.S. Supreme Court denied certiorari in two telecommunications related cases this month, letting stand the decisions handed down by the Courts of Appeals that handled the cases. First, the Supreme Court denied certiorari in Talk America v. Douglas [Sup. Ct. No. 07-719], a case involving the enforcement of arbitration clauses in telecommunications service contracts. The Supreme Court’s refusal to hear the case essentially upholds the ruling of the Court of Appeals for the Ninth Circuit, which held in July 2007 that a telecommunications service provider can not enforce an arbitration clause that exists only in a revised copy of a service contract published in its web site, when the customer had no notice.
Second, the Supreme Court denied certiorari in American Telecom v. Lebanon [Sup. Ct. No. 07-721], a case that concerns federal court jurisdiction over the rights of other nations in telecommunications disputes. The Court of Appeals for the Sixth Circuit found that a U.S. District Court lacked jurisdiction over the government of Lebanon in a telecom dispute involving an American bidder for a contract to manage cellular telephone networks in Lebanon. The government of Lebanon disqualified it, and awarded contracts to other companies. In response to that company’s allegations of breach of contract, fraud, promissory estoppel, and breach of quasi contract, the Court of Appeals ruled that the government of Lebanon is immune under the Foreign Sovereign Immunities Act (FSIA). The Supreme Court’s decision not to hear the case essentially upholds the Court of Appeals’ decision in this matter. [Source: U.S. Supreme Court, 9th Circuit Court of Appeals, and 6th Circuit Court of Appeals]
Local Telephone Competition Data Released by FCC
03.20.2008 – The FCC has released its latest data on the state of competition for local telephone service in the United States. Twice a year, incumbent local exchange carriers (ILECs) and competitive local exchange carriers (CLECs) are required to report basic information about their service and facilities to the FCC. The data made available in this most recent report reflects the state of local telephone competition as of June 30, 2007.
Among the main findings made available by the FCC, end-user customers obtained local telephone service by utilizing approximately 134.5 million ILEC switched access lines, 28.7 million CLEC switched access lines, and 238.2 million mobile telephony service subscriptions at the end of June 2007. Of the 28.7 million CLEC end-user switched access lines, 7.7 million lines were provided over coaxial cable connections. In addition to a rise in local telephone service provided by cable connections, wireless service continues to grow. Mobile telephony service grew by 21 million lines, or 10 percent, more than a year earlier. Finally, there was at least one CLEC serving customers in 82% of the nation’s Zip Codes at the end of June 2007. About 98% of United States households resided in those Zip Codes. Moreover, multiple carriers reported providing local telephone service in the major population centers of the country.
For more information, please see the FCC’s report, “Local Telephone Service: Status as of June 30, 2007,” at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-280943A1.txt] (MS Word and PDF versions also available). [Source: FCC]
Mobile Access to Data Report Released by Pew Internet
03.05.2008 – The Pew Internet Project recently released a report, entitled “Mobile Access to Data and Information,” that examines how Americans access Internet data and services through the use of mobile wireless technologies. According to the survey, conducted in December 2007, 58 percent of adult Americans have used a cell phone or personal digital assistant (PDA) to perform at least one of ten mobile non-voice data activities, such as texting, e-mailing, taking a picture, or looking for directions. Also, 41 percent of Americans have logged onto the Internet while away from home or work either with a wireless laptop connection or a handheld device. In total, the report concludes that 62 percent of all Americans have some experience with mobile access to digital data and tools. Such users have either used a cell phone or PDA for a non-voice data application or logged on to the internet away from home or work using a wireless laptop connection or with a handheld device.
For a copy of the Pew Internet Project’s report, please see [http://www.pewinternet.org/pdfs/PIP_Mobile.Data.Access.pdf] (PDF version only). [Source: Pew Internet Project]
Google Unveils Plan to Use TV White Spaces for Wireless Internet
03.25.2008 – In a letter to the FCC, Google has offered a number of suggestions about how vacant television airwaves, known as white spaces, could be used to provide high-speed mobile Internet access without disrupting televisions and wireless microphones. Google is part of a group called the White Spaces Coalition, which also includes Microsoft, Royal Philips Electronics, Dell, and Intel, that wants the FCC to open the broadcast spectrum for unlicensed uses, like mobile Internet access, after broadcasters convert to digital signals in 2009. Google claims that its proposals made to the Commission could help ensure that consumers anywhere would be able to use devices on those airwaves by late next year.
Google has been seeking to increase revenue by creating more Internet services for mobile phones and devices. Portable technology is outselling personal computers, and its popularity provides new possibilities to advertising as means of creating revenue. Toward these ends, Google scored a victory in the FCC’s auction of the 700 MHz spectrum. Google did not win the auction for Block C after Verizon Wireless agreed to spend $4.74 billion on spectrum that will be available for any legal device. But Verizon’s bid surpassed a $4.6 billion threshold to activate the so-called open-access rules on the spectrum. Google had sought the rules to spur the use of new wireless devices. [Sources: New York Times and Wall Street Journal]
Verizon Provides Details on Open Network Policy
03.20.2008 – Following up on its announcement of a new policy to open its network to outside wireless devices, Verizon announced plans this month on how consumers will be able to access and use the carrier’s network with handsets and services not purchased through Verizon’s retail outlets. The wireless carrier announced that any company that wants to make a mobile device, such as a cell phone, can bring it to market for Verizon's 65 million customers as long as it meets the carrier's minimum technical requirements, which executives have claimed would not be burdensome. Executives said that Verizon hoped that the certification process would be short, perhaps less than a month, but that could vary depending on how much upfront work developers did before applying for certification. To help along the process Verizon launched a website where developers can ask questions, give feedback, and follow their products through the approval process.
Verizon’s new open network website may be found at [http://www.verizonwireless-opendevelopment.com/]. [Sources: Wall Street Journal and New York Times]
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]
Public En Banc Hearing on Broadband Network Management Practices
04.17.2008 – The FCC announced that it will hold its second public En Banc hearing to study broadband network management practices at Stanford University in Palo Alto, California, on Thursday, April 17, 2008. This latest hearing follows a similar one held at the Harvard Business School in late February and will include testimony from expert panelists regarding broadband network management practices and Internet-related issues.
Seating for the hearing is open to the public on a first come, first served basis. Additional details will be forthcoming, but in the meantime, the FCC announcement may be found at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-280895A1.txt] (MS Word and PDF versions also available). Also, a map and directions to Stanford University may be found at [http://www.stanford.edu/home/visitors/maps/index.html]. [Source: FCC]