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Telecommunications Reports presents.... TR DAILY June 7, 2001 -------------------------------------------------- PLEASE NOTE: This electronic publication is copyrighted by Telecommunications Reports International. Redistribution or retransmission of any part of this electronic publication -- either internally or externally -- is strictly prohibited. Violation will be cause for immediate termination of your subscription and liability for damages. You may print out one hard copy for your personal use. If you are interested in having this publication sent to colleagues at your company, additional authorized recipients may be added to your subscription for a fee. Call Subscriber Services, at (800) 822-6338, or send an e- mail to customerservice@tr.com for more details. If you prefer not to receive TR Daily, please reply to customerservice@tr.com. -------------------------------------------------- Table Of Contents Click here for the full issue: http://www.tr.com/online/trd/2001/td060701/index.htm SBC WITHDRAWS BID TO OFFER InterLATA SERVICES IN MISSOURI http://www.tr.com/online/trd/2001/td060701/Td060701.htm LAWMAKERS, POLICY ADVOCATES PITCH BROADBAND SERVICE BILLS http://www.tr.com/online/trd/2001/td060701/Td060701-01.htm CARRIERS ASK WIRELESS BUREAU TO RETHINK `E911' DECISION http://www.tr.com/online/trd/2001/td060701/Td060701-02.htm MCI SHARES BEGIN TRADING AGAIN, AS WorldCom ISSUES TRACKING STOCK http://www.tr.com/online/trd/2001/td060701/Td060701-03.htm AT&T COMPLETES CABLE MODEM `OPEN-ACCESS' TRIAL http://www.tr.com/online/trd/2001/td060701/Td060701-04.htm NEWS IN BRIEF http://www.tr.com/online/trd/2001/td060701/Td060701-05.htm *************************************************************** SBC WITHDRAWS BID TO OFFER InterLATA SERVICES IN MISSOURI SBC Communications, Inc., today withdrew its petition to offer in-region interLATA (local access and transport area) services in Missouri in the face of FCC concerns about rates for unbundled network elements and the adequacy of its operation support systems (OSSs). SBC said it would provide "additional evidence" supporting its Missouri application and refile a petition with the FCC "as soon as possible." The FCC would have 90 days after the filing of the new petition to decide whether SBC had complied with section 271 of the Telecommunications Act of 1996, which mandates that Bell operating companies meet a 14-point "competitive checklist" of market-opening requirements before they can offer in-region interLATA services. Refiling the application would enable SBC to "further address questions raised by the Department of Justice and others over SBC's original application, as well as provide updated evidence of continued compliance with section 271," SBC said. Justice didn't recommend that the FCC reject the application, but it did raise several questions, including whether SBC's unbundled network element rates in Missouri complied with the FCC's TELRIC (total-element long-run incremental cost) standard (TR, May 14). "We believe our application for Missouri passes all the tests, and Missouri regulators agreed by unanimously endorsing our application," said Priscilla Hill-Ardoin, SBC senior vice president. "Our markets are open, as the rapid growth of competition in the state demonstrates. But it is important that our application record include a comprehensive response to several new issues raised since our Missouri application was filed. We would rather the FCC vote on the most current information available." In a statement issued late this afternoon, FCC Chairman Michael K. Powell said, "During the FCC Common Carrier Bureau's review of SBC's section 271 application for authority to offer long distance service in Missouri, concerns surfaced related to cost- based pricing in its region and operation support systems (OSS). Given these concerns SBC has chosen to withdraw the application." Mr. Powell said the proceeding was "terminated until such time as SBC has addressed these issues and is prepared to resubmit its application." *************************************************************** LAWMAKERS, POLICY ADVOCATES PITCH BROADBAND SERVICE BILLS With key votes on broadband services legislation approaching in the House -- including a possible floor vote on HR 1542 later this month -- telecom lawmakers and industry officials today made a new round of policy pitches on the subject. Their audience was the more than 100 congressional staffers at today's Internet Caucus luncheon in the U.S. Capitol. The luncheon at times seemed like a mini-hearing: Lawmakers offered their usual arguments, challenged each other's claims, and asked those in attendance for support. In a separate panel held later, industry representatives drew swords over broadband services legislation. Carrying the flag for the Bell companies' bill of choice, the Internet Freedom and Broadband Deployment Act, HR 1542, were Rep. W.J. (Billy) Tauzin (R., La.), its author, and Reps. Rick Boucher (D., Va.), and Bob Goodlatte (R., Va.). Filling out the congressional panel were two of the more outspoken skeptics of the data-relief legislation -- Reps. Steve Largent (R., Okla.) and Christopher Cannon (R., Utah). Rep. Largent argued that HR 1542's provision to eliminate the in- region interLATA (local access and transport area) restrictions on the Bell companies' provision of data services would remove the Bells' incentive to open their local markets. "It's like changing the rules of the game in the middle of the game," he said. "No other industry has that kind of domination by one entity. . .like the Bells do in the local loop." Rep. Tauzin fired back, saying the Bell companies were "always in the middle of a game." The 14-point market-opening check-list found in section 271 of the Telecommunications Act of 1996 "has become 1,100 points," he said. "And the FCC has gummed things up so badly, that AT&T [Corp.] can sit there beautifully and stymie entry" into the cable modem market, he said. HR 1542 would correct that discrepancy and spur competition by putting the Bells' provision of advanced services on equal regulatory footing with the broadband offerings of cable TV providers, said Reps. Boucher and Tauzin. "But AT&T loves the status quo so much. . .that's why they've spent all this money on TV ads opposing" HR 1542, Rep. Tauzin said. There is a "good chance" that HR 1542 will be taken up on the House floor before the July 4 break, he said. Rep. Cannon, who advocates a different approach to spurring advanced service deployment, said AT&T Chairman and Chief Executive Officer C. Michael Armstrong told him yesterday that Congress's consideration of HR 1542 has contributed to Wall Street's sour outlook on the competitive local exchange carrier (CLEC) industry. "Mr. Armstrong said he had no interest in buying a [CLEC] as long as HR 1542 is out there," Rep. Cannon said. "I don't agree that those companies are failing because of bad business plans," he added. "The Bells have blocked their access" to local markets. During the industry panel, HR 1542's provision to scale back the FCC's rules on "line sharing" sparked debate between Larry Clinton, vice president-large company affairs for the U.S. Telecom Association, and Thomas Koutsky, VP-law and public policy for Z-Tel Technologies, Inc. "If you want competition for local phone service, you don't want line sharing," Mr. Clinton told attendees. But Mr. Koutsky said "the point of line sharing and unbundling was to provide rings for CLECs to climb into the market." Passage of HR 1542 would remove those market-access elements, he said. *************************************************************** CARRIERS ASK WIRELESS BUREAU TO RETHINK `E911' DECISION Four carriers have asked the FCC's Wireless Telecommunications Bureau to reconsider its decision regarding who should pay for Phase I enhanced "911" (E911) systems. In a May 7 letter, bureau Chief Thomas J. Sugrue said the 911 selective router maintained by incumbent local exchange carriers was the proper demarcation point for allocating E911 implementation costs between wireless carriers and public safety answering points (PSAPs) (TR, May 14). Mr. Sugrue was responding to a request for clarification from the King County, Wash., E911 program (TR, Aug. 21, 2000). The bureau's decision supported the PSAPs' argument regarding the demarcation point. Carriers, on the other hand, had maintained that PSAPs should be responsible for E911 network components or upgrades beginning at the wireless carrier's mobile switching center, not the 911 selective router. In a petition filed yesterday in Common Carrier docket 94-102, Qwest Wireless LLC, Verizon Wireless, VoiceStream Wireless Corp., and Nextel Communications, Inc., said the bureau's decision "is inconsistent with the Commission's rules and underlying orders and is beyond the bureau's delegated authority." They asked the bureau to designate the mobile switching center as the demarcation point. The carriers charged that the bureau failed to follow the Ad- ministrative Procedure Act's mandate that it consider and respond to "significant" comments filed in the record of the proceeding. The companies also said the bureau's decision required a formal rulemaking by the full Commission. *************************************************************** MCI SHARES BEGIN TRADING AGAIN, AS WorldCom ISSUES TRACKING STOCK WorldCom, Inc., has split each share of its common stock into two tracking stocks, one of which will reflect the performance of the unit that provides long distance service to consumers and small businesses. WorldCom is calling that unit the MCI Group because WorldCom acquired most of that business when it bought MCI Communications Corp. The MCI Group also includes WorldCom's wireless messaging and dial-up Internet access operations. The other tracking stock will reflect the performance of the WorldCom Group, which includes the company's high-growth data, Internet, international, and commercial voice businesses. Each existing WorldCom share has been converted into one WorldCom Group tracking share and 1/25 of an MCI Group tracking share. Bernard J. Ebbers, WorldCom's president and chief executive officer, has been talking for nearly a year about separating the slow-growing consumer long distance business from the faster- growing WorldCom operations (TR, July 31, 2000). The split was approved today at a shareholders meeting in Clinton, Miss. The two tracking stocks will provide "two distinct, clear, and compelling investment opportunities," Mr. Ebbers said. The MCI Group stock will pay a quarterly dividend of 60 cents per share; WorldCom shares won't pay a dividend. The new shares will begin trading tomorrow on the Nasdaq stock market. *************************************************************** AT&T COMPLETES CABLE MODEM `OPEN-ACCESS' TRIAL AT&T Broadband today said it had completed a six-month trial in Boulder, Colo., that allowed multiple Internet service providers (ISPs) to offer high-speed access over AT&T's cable modem platform. The company said it was "on schedule" to offer consumers their choice of cable modem ISPs by mid-2002. AT&T Broadband said more than 300 end-users and four ISPs participated in the trial, which cost about $20 million. The Boulder trial will be extended for two months in a limited area to continue evaluating the "service agent" software. Customers use that software to register for and connect to an ISP. AT&T also plans to continue testing billing and customer-care features before launching a limited commercial program in Massachusetts that will let customers choose their cable modem ISP. That launch is slated for later this year. *************************************************************** NEWS IN BRIEF The FCC has named Marlene H. Dortch acting director of its Office of Communications Business Opportunities. She was chief of the equal employment opportunity staff in the FCC's Mass Media Bureau.... Barbara S. Esbin will join the FCC as associate chief of the Cable Services Bureau, effective July 15. She has been a partner in the law firm of Dow, Lohnes & Albertson. In the 1990s she held various positions in the Cable Services, Wireless Telecommunications, and Common Carrier bureaus.... The Vermont Senate has confirmed the appointment of John D. Burke to a full six-year term on the Vermont Public Service Board. He has been serving the remainder of former Commissioner Suzanne Rude's term since December 2000.... Andre Dahan has been named president and chief executive officer of AT&T Wireless's new Mobile Multimedia Services subsidiary. AT&T Wireless and NTT DoCoMo are sharing technical resources and support for the new subsidiary based in Redmond, Wash. Mr. Dahan was president of Dun & Bradstreet North America.... Eddie Edwards has been named executive vice president-strategic development and president-wireless products group at CommScope, Inc. He was president of Alcatel's Radio Frequency Systems subsidiary. He is a past president of the Telecommunications Industry Association. CommScope, of Hickory, N.C., makes cable TV and telecom equipment.... Donald Ochoa has been named vice president-sales (Western region) at Carrier Access Corp. He was VP-sales (Western region) at InfoLibria. Prior to that, he was director-worldwide business development at 3Com Corp. Carrier Access is a telecom equipment manufacturer based in Boulder, Colo.... Steve Wilson has joined GlobalNet, Inc., as vice president-sales and marketing. He was head of the international wholesale division at CapRock Communications Corp. GlobalNet is a telecom service provider based in Lombard, Ill.... Decker Anstrom has been elected to the board of Comcast Corp. He is president and chief executive officer at The Weather Channel. He was president of the National Cable Television Association.... Core Communications, Inc., (CoreTel) today asked the U.S. Court of Appeals in Washington to stay the FCC's order overhauling rules regarding "reciprocal compensation" for dial-up calls to Internet service providers. CoreTel also has asked the FCC for a stay, but the agency hasn't acted on the petition.... A Cook County, Ill., Circuit Court judge today set deadlines for filing responses and replies to a proposed settlement agreement in a class-action lawsuit against the mobile phone industry. The judge scheduled a hearing for July 3 on the settlement agreement between Wireless Technology Research LLC and plaintiffs who filed the lawsuit in 1995. WTR had conducted a multi-year industry- funded initiative on the health effects of mobile phone use. Under the agreement, $250,000 will be set aside to fund a voluntary, surveillance registry to study the connection between mobile phone use and illnesses.... CT Communications, Inc., said it had acquired a portion of Cingular Wireless LLC's network in North Carolina. Under the transaction, which is worth about $25 million, CTC has acquired 47 cell sites covering 14,000 subscribers and a license for spectrum covering a population of 450,000 north of Charlotte.... The International Trade Administration is sponsoring a trade mission to Southeast Asia from July 31-August 9. The mission is open to U.S. companies interested in information technology and e-commerce business opportunities in Vietnam, Malaysia, and the Phillipines. To obtain a mission statement or more information, call Ms. Tu-Trang Phan at 202/482-0480.... Glenayre Technologies, Inc., has filed a counterclaim to a patent and trademark infringement complaint from Research in Motion Ltd. RIM's complaint, filed at U.S. District Court in Delaware, alleges that Glenayre infringed on a patent related to its BlackBerry wireless e-mail device. Eric Doggett, Glenayre's president and chief executive officer, called RIM's allegations "groundless" and said RIM did not identify which Glenayre product allegedly violated RIM's patent. Glenayre also asserted counterclaims of "invalidity, unenforceability, and noninfringement of the RIM patent".... PSINet, Inc., has signed a letter of intent to sell its operations and facilities in Argentina, Brazil, Mexico, and Uruguay to an investment group. The purchase price wasn't disclosed. The potential buyers are Cori Capital Partners L.P. and other investors, including senior members of PSINet's Latin American management team. The Ashburn, Va.-based provider of Internet and network services recently filed for bankruptcy and announced several asset sales (TR, June 4). ******************************************************** TR DAILY Copyright 2001 Telecommunications Reports International, Inc., (ISSN 1082-9350) is transmitted weekdays, except for holidays. Visit us on the World Wide Web at http://www.tr.com. Published by the Business & Finance Group of CCH INCORPORATED. Associate Editor: Tom Leithauser Associate Editor: Ryan Oremland Associate Editor: Ed Rovetto Editor in Chief: Victoria A. Mason Publisher: Stephen P. Munro 1333 H Street, NW, 1st Floor-East Tower, Washington, DC 20005 Editorial Information: Telephone: (202) 312-6060 Fax: (202) 312-6111 Email: tleithauser@tr.com Customer Service: Telephone: (202) 312-6050 (877) 874-8737 Fax: (202) 312-6116 Email: customerservice@tr.com Federal copyright law prohibits duplication or reproduction in any form, including electronic, without permission of the publisher.=0F:
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