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Looks like a good court decision on the reciprocal access issue for=20
interconnection agreements. Do we know what's meant by "advanced services" in the amendment to the Tauz= in=20 Bill requiring ILEC sale of advanced services at wholesale prices for three= =20 years? =20 Sue Nord, Sr. Director Government Affairs 713 345-4196 ----- Forwarded by Sue Nord/NA/Enron on 05/09/2001 08:16 AM ----- =09"Telecommunications Reports International, Inc." <trnews@tr.com< =0905/08/2001 05:07 PM =09=09=20 =09=09 To: "Telecommunications Reports International, Inc." <tr_news_letter= @cch.com< =09=09 cc:=20 =09=09 Subject: TR Daily, 08 May, 2001 -------------------------------------------------- Telecommunications Reports presents.... TR DAILY May 8, 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. 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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/td050801/index.htm AS COMMERCE COMMITTEE VOTE NEARS ON HR 1542, BELLS SPAR WITH CLECs, IXCs OVER `SUBSTITUTE' http://www.tr.com/online/trd/2001/td050801/Td050801.htm JUDGE: CLECs DON'T HAVE TO GIVE=20 ILECs ACCESS TO RIGHTS-OF-WAY http://www.tr.com/online/trd/2001/td050801/Td050801-01.htm FCC PROPOSES CHANGING USF=20 CONTRIBUTION SYSTEM http://www.tr.com/online/trd/2001/td050801/Td050801-02.htm FCC's WIRELESS BUREAU SIDES WITH PUBLIC=20 SAFETY AGENCIES ON `E911' COSTS http://www.tr.com/online/trd/2001/td050801/Td050801-03.htm STUDY SAYS MOBILE PHONE USE PLAYS LITTLE ROLE IN ACCIDENTS http://www.tr.com/online/trd/2001/td050801/Td050801-04.htm CABLEVISION WON'T HELP AT&T=20 SELL $2B CABLEVISION STAKE http://www.tr.com/online/trd/2001/td050801/Td050801-05.htm FCC SEEKS EXTRA $4M FOR ENGINEERING PROGRAM http://www.tr.com/online/trd/2001/td050801/Td050801-06.htm NEWS IN BRIEF http://www.tr.com/online/trd/2001/td050801/Td050801-07.htm *************************************************************** AS COMMERCE COMMITTEE VOTE NEARS ON HR 1542, BELLS SPAR WITH CLECs, IXCs OVER `SUBSTITUTE' Bell company interests predict the Internet Freedom and Broadband Deployment Act, HR 1542, will clear the House Energy and Commerce Committee by a comfortable margin tomorrow. Opponents, however, hope that enough amendments and opposition will surface to dampen Congress's enthusiasm for broadband "relief" legislation. "It looks like it will pass," U.S. Telecom Association interim President and Chief Executive Officer Gary S. Lytle told TR today after a press briefing to review the legislation. "It should get somewhere in the mid to high 30s," he said, referring to the number of members on the 57-person panel that USTA predicts will vote for the bill at tomorrow's markup session. The bill cleared the telecommunications and the Internet subcommittee last month by a 19-14 vote (TR, April 30). Meanwhile, a "substitute" version of HR 1542 that began circulating late last night (Monday) has sparked another round of bickering between Bell company interests and members of the competitive local exchange carrier and interexchange carrier industries. The substitute, released by Commerce Committee Chairman W.J. (Billy) Tauzin (R., La.), incorporates the four amendments that were approved by the telecom subcommittee. It also adds new language regarding FCC rules on ILECs' resale of advanced services and "line sharing" and new definitions for "Internet backbone services" and "Internet access service." H. Russell Frisby Jr., president of the Competitive Telecommunications Association, said the new provisions would make the legislation "go from bad to worse under the guise of compromise." The new definition of "Internet backbone services" is too broad, he said, as it would include too many services in a deregulated regime. Mr. Frisby also pointed to language that purportedly would preserve CLECs' ability to implement line sharing. The FCC's line-sharing rules permit CLECs to offer data services over the high-frequency portion of a line while the ILEC continues to provide voice services over the lower-frequency portion. But Mr. Frisby said the substitute bill would invalidate later FCC orders that "put the meat on the bones" of the line-sharing mandates. According to a copy of the substitute draft, the FCC's rules on line sharing would remain intact, but ILECs wouldn't be required to provide access to the high-frequency portion of the loop at the remote terminal -- a provision that another critic agrees would "undercut" the Commission's line-sharing rules. "If line sharing is not allowed through remote terminals, then 35% of consumers will be denied residential broadband competition because of this bill," the CLEC source said. That claim, however, was disputed by Thomas J. Tauke, senior vice president-public policy and external affairs for Verizon Communications, Inc. Speaking with reporters at the USTA press briefing, Mr. Tauke said the bill's new line-sharing language would have a "minimal effect" on CLECs in Verizon's service territory because "very few of them use" line sharing. For Verizon, the substitute language would eliminate the "economic and practical problems of providing for line sharing when we have fiber in the local loop," he said. Rep. Tauzin's substitute bill also has new language requiring ILECs to continue reselling advanced services at wholesale rates for as many as three years after enactment of the bill. The original version of the bill would have given ILECs an immediate exemption from resale obligations. Committee staffers were said to be working out last-minute details on another amendment that's expected to be offered tomorrow by Reps. Cliff Stearns (R., Fla.), Bobby L. Rush (D., Ill.), and Thomas C. Sawyer (D., Ohio). According to sources, the amendment would give ILECs immediate regulatory relief. But it would require ILECs to make about 70% of their central offices DSL (digital subscriber line)-ready by a date certain, most likely within three years of enactment. Mr. Tauke said Verizon would oppose any DSL buildout requirements, saying "it's good public policy not to have a buildout provision in this legislation." The government should mandate buildout requirements "only when the market isn't working," he said. Many of the same amendments that were withdrawn during the telecom subcommittee's review are being teed up for tomorrow, including several from Rep. Tom Davis III (R., Va.) and one from Rep. Anna Eshoo (D., Calif.) to require Bell companies to continue filing service-quality and accounting reports at the FCC. Rep. Tauzin has said he would address FCC "enforcement" issues at tomorrow's markup session, but he may not tackle those issues through legislation. Asked by TR whether Rep. Tauzin planned to offer an FCC enforcement amendment to HR 1542, spokesman Ken Johnson said today, "I can only confirm that Reps. Tauzin and [Rep. Fred Upton (R., Mich.)] will offer an amendment before the bill gets to the House floor to substantially beef up the FCC's enforcement" tools. *************************************************************** JUDGE: CLECs DON'T HAVE TO GIVE ILECs ACCESS TO RIGHTS-OF-WAY A federal district judge in Lincoln, Neb., has ruled that competitive local exchange carriers (CLECs) aren't required to give incumbent local exchange carriers (ILECs) access to their poles, ducts, and rights-of-way. Judge Richard G. Kopf made the determination in "AT&T Communications of the Midwest, Inc., v. U S WEST Communications, Inc., et al." (case no. 4:97CV3286). AT&T brought the lawsuit in 1997, seeking to overturn the Nebraska Public Service Commission's approval of an interconnection agreement. That agreement required AT&T to give U S WEST (now Qwest Corp.) "reciprocal access" to poles, ducts, and rights-of-way. Consideration of the lawsuit was delayed by judicial challenges to the FCC's landmark 1996 order on carrier interconnection. Judge Kopf was faced with a split among federal courts on how to handle an apparent contradiction in the Communications Act of 1934, as amended by the Telecommunications Act of 1996. Section 251 of the Act appears to require all local exchange carriers (LECs) -- whether ILECs or CLECs -- to grant access to their rights-of-way, the judge said. But section 224 seems to require that all LECs grant access only to competitive, not incumbent, local exchange carriers, he said. The FCC had based its regulations on section 224, and most federal district courts had deferred to that interpretation, Judge Kopf said. But the U.S. Court of Appeals for the Ninth Circuit (San Francisco) has said it "doubts the soundness of the FCC's interpretation of section 251." Judge Kopf, however, followed the other district courts and deferred to the FCC's interpretation. He concluded that "in light of the Act's purpose, [which is] to promote competition,. . .the FCC's interpretation that no ILEC may seek access to the facilities or rights-of-way of a LEC or any utility under either section 225 of section 251 is based on a permissible construction of the statutes and does not conflict with the plain meaning of the Act." Judge Kopf ruled that the reciprocal-access portion of the companies' interconnection agreement violated the Act and the FCC's rules. He enjoined Qwest from enforcing that portion of the agreement. *************************************************************** FCC PROPOSES CHANGING USF CONTRIBUTION SYSTEM The FCC has proposed "streamlining and simplifying" the way it collects Universal Service Fund (USF) contributions. The proposals, which include limiting how carriers recover contributions from their customers and using a flat-rate assessment, are aimed at dealing with recent changes and developing trends in the industry. The FCC recently tweaked the USF contribution system to reduce the "lag time" between accrual of revenues and payment of contributions based on those revenues (TR, March 19). At that time, it said it soon would consider "more fundamental modifica- tions" to the USF contribution mechanism. The USF supports affordable service in "high-cost" areas and discounted service for low-income customers, schools, libraries, and rural health care providers. USF contributions currently are assessed as a percentage of carriers' interstate and international end-user telecom service revenues. The percentage is based on revenues as of six months before the contributions are collected. The FCC allows carriers to decide for themselves whether and how to recover contribution costs from their customers. In a statement today, the FCC said the following industry trends affect USF contributions: (1) the entrance of new companies -- such as the Bells -- into certain long distance markets, (2) growth in the wireless telecom sector, to the extent that wireless carriers' interstate revenues may exceed the FCC's interim "safe harbor" threshold for contributions, and (3) increased bundling of services, making it difficult to distinguish interstate from intrastate revenues. The FCC is seeking comments on whether it should require carriers to contribute a percentage of their collected revenues, rather than a percentage of their billed revenues, to the USF. It wants to know whether it should assess contributions based on current or projected revenues. The Commission also asks whether it should use a flat assessment, such as a fixed per-line charge; if it should require that carriers give customers a uniform description of contribution recovery charges; and whether those charges should be limited to the amount of the contribution assessment. *************************************************************** FCC's WIRELESS BUREAU SIDES WITH PUBLIC SAFETY AGENCIES ON `E911' COSTS The FCC's Wireless Telecommunications Bureau has sided with public safety agencies in a dispute over who should bear more of the financial burden for installing Phase I "enhanced 911" (E911) systems. In a May 7 letter to the King County (Wash.) E911 Program, bureau Chief Thomas J. Sugrue clarified that the 911 selective router maintained by incumbent local exchange carriers is the proper demarcation point for allocating E911 implementation costs between wireless carriers and public safety answering points (PSAPs). The bureau's determination supports the view held by PSAPs.=20 Carriers, on the other hand, had maintained that PSAPs should be responsible for E911 network components or upgrades beginning at carriers' switches. The bureau sought comments on the issue last year in response to King County's request for a clarification of the FCC's position (TR, Aug. 21 and Sept. 25, 2000). In the letter, Mr. Sugrue stressed that the agency "continues to favor negotiation between the parties as the most efficacious and efficient means for resolving disputes regarding cost allocations for implementing Phase I." But PSAPs still will have to bear some costs, he said, including upgrades to the 911 selective router, trunking equipment, and other hardware and software. *************************************************************** STUDY SAYS MOBILE PHONE USE PLAYS LITTLE ROLE IN ACCIDENTS Mobile phones are responsible for distracting drivers in only a small percentage of vehicle accidents, according to an analysis of accident data released today. The University of North Carolina's Highway Safety Research Center compiled the study for the AAA Foundation for Traffic Safety using data from the National Highway Traffic Safety Administration's Crashworthiness Data System. The data were collected from 1995 to 1999 on 32,303 vehicles involved in crashes in which at least one vehicle was towed from the scene. Results were weighted to calculate national estimates. In crashes where driver distraction was a factor, 29.4% of the time that distraction was something outside the driver's vehicle, the study found. Drivers' attempts to adjust car radios was a factor in 11.4% of collisions involving driver distraction, and passengers were a factor in 10.9% of those crashes, the study said. Mobile phones were number eight on the list of driver distractions. Use of wireless phones preceded 1.5% of crashes where driver distraction was a factor, the study said. The margin of error for each category varied from 0.4% to 7.2%; for mobile phone use, it was 0.9%. Jane Stutts, manager of epidemiological studies at the UNC center and the study's author, told TR that the mobile phone results were "surprising just because people assume that cell phones cause a lot of crashes." But she stressed that many drivers may be reluctant to tell police that they were distracted by using a phone. "They may try to hide it," she said. The estimates for mobile phone use were based on only 42 reported cases. Ms. Stutts also noted that the driver distraction was listed as "unknown" for almost 36% of the cases studied. She said this fact highlights the need for improved collection of accident data. *************************************************************** CABLEVISION WON'T HELP AT&T SELL $2B CABLEVISION STAKE Cablevision Systems Corp. executives today said they don't intend to help AT&T Corp. sell $2 billion in Cablevision shares. AT&T had asked Cablevision, a cable TV system operator based in Bethpage, N.Y., to register the 30 million shares with the Securities and Exchange Commission, allowing for a public sale (TR, April 16). "Cablevision has notified AT&T that we will not proceed at this time with the registration of their shares" of Cablevision common stock, said William Bell, Cablevision's vice chairman. Instead, Cablevision is considering its own public stock sale to raise funds to improve its cable TV networks, he said during a conference call with investors and analysts. Cablevision's decision may complicate AT&T's efforts to sell the shares, which it inherited in the 1999 takeover of Tele- Communications, Inc. AT&T wants to sell the stake to raise funds for debt reduction and to thin its cable TV holdings. The FCC's rules regarding cable TV ownership are in limbo after being vacated by the U.S. Court of Appeals in Washington. But AT&T has been maneuvering to sell some cable TV holdings in preparation for the enactment of new rules. AT&T still can sell the Cablevision shares, Mr. Bell said. AT&T has "piggyback" registration rights that entitle it, under certain conditions, to add its shares to Cablevision's public stock offerings, according to SEC documents. "AT&T may or may not be able to exercise some piggyback rights," Mr. Bell said.=20 "It really will depend on market conditions and what Cablevision's needs are." *************************************************************** FCC SEEKS EXTRA $4M FOR ENGINEERING PROGRAM The FCC is asking congressional appropriators to earmark an additional $4 million for its fiscal year 2002 budget. The funds would help pay for a new "Excellence in Engineering" training and recruitment program. President Bush has proposed $248 million for the FCC for FY 2002 -- an 8% increase over the Commission's current appropriation level (TR, April 16). In a letter to Sen. Conrad Burns (R., Mont.), FCC Chairman Michael K. Powell says the extra money would be used for recruitment incentives, educational initiatives for advanced and "non"-engineers at the FCC, and upgrading the agency's technical equipment. "The overarching goal of the program is to ensure that the Commission maintains a high level of technical expertise so that it is at least as fluent in technology and engineering issues as are the entities it regulates," Mr. Powell said in the May 4 letter. Mr. Powell's letter included draft legislation that would allow the FCC to establish salaries for engineers and other technical and professional hires that are "more competitive with the private sector." The proposal also authorizes each Commissioner to hire a professional engineering assistant in addition to the three professional assistants they currently are allowed. A Burns spokeswoman said the lawmaker was "working with Mr. Powell to submit the budget request." Sen. Burns is chairman of the communications subcommittee and is a member of the Appropriations Committee.=20 *************************************************************** NEWS IN BRIEF Frank Malpartida has been named managing director-international sales in the new Miami office of Progress Telecom, a Florida- based "carrier's carrier." He was an independent consultant for European and Latin American telecom companies. Progress Telecom, a subsidiary of Progress Energy, has opened a Miami office to take advantage of the new NAP (Network Access Point) of the Americas, a network interconnection site in South Florida.... Susan R. Lichtenstein has been named senior vice president, general counsel, and secretary at Tellabs, Inc., succeeding retiring SVP Carol Coghlan Gavin. Ms. Lichtenstein has been VP, general counsel, and secretary at Ameritech Corp.... Rachel Lipman Reiber has joined UtiliCorp Communications Services as vice president-regulatory and governmental affairs. Ms. Reiber was Sprint Corp.'s director-state regulatory affairs and was a member of the Kansas Corporation Commission from 1991 to 1995.... Matt Milstead has been named president-Latin American division at 360networks, Inc. He was the company's general manager-eastern operations and earlier was senior vice president and chief operating officer at Lightwave Spectrum International.... Canadian carrier Call-Net Enterprises, Inc., will reduce expenses by cutting its workforce by 360 people, or 15%, by year-end.=20 Call-Net said it also would trim its capital expenditure budget.... NTL Communications Corp., a subsidiary of NTL, Inc., is attempting to raise $500 million through the private sale of convertible senior notes. The New York-based company, which offers cable TV and telecom services in Europe, said it would use part of the money to fund its business needs during the next three years.... Senate communications subcommittee Chairman Conrad Burns (R., Mont.) is considering holding a hearing in September to review enhanced "911" service implementation issues, a Burns aide said today at a forum sponsored by the ComCARE Alliance.... The National Emergency Number Association (NENA) has launched a field testing and certification program to ascertain whether wireless carriers are complying with the FCC's rules for deploying Phase II "enhanced 911" (E911) systems. NENA has formed an alliance with RCC Consultants, Inc., a consulting firm, to implement the initiative.... The FCC's Wireless Telecommunications Bureau is seeking comments on a request by Leap Wireless International, Inc., for a waiver of the agency's broadband PCS (personal communications service) construction requirements. Leap wants an extension of the build- out period for 38 licenses it recently acquired. It wants a one- year extension for 21 licenses covering 16 markets and a two-year extension for 17 licenses covering 15 markets. Comments are due May 22 and replies May 30. All filings should reference DA 01- 1172.... The FCC has denied Coleman Enterprises, Inc.'s request that it reconsider imposing a forfeiture of $750,000 against the company.=20 The forfeiture was for violations of FCC rules on "slamming" -- making unauthorized changes to a customer's presubscribed telecom service provider. CEI had asked the FCC to reduce or rescind the fine because it had filed for Chapter 11 bankruptcy protection.=20 The FCC said it denied the request because of the "egregious nature of the violations at issue, combined with the fact that CEI is a going concern.".... Anadarko Petroleum Corp., a Houston-based energy exploration and production company, has agreed to make a $15,000 contribution to the U.S. Treasury and to implement a rules-compliance program to settle charges that it transferred control of 49 land mobile and microwave licenses without FCC approval. The company has signed a consent decree with the FCC's Enforcement Bureau. A memorandum opinion and order in the case was released today in file no. EB- 01-IH-0215. ******************************************************** 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.=20 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) 842-3047 Email: tleithauser@tr.com Customer Service: Telephone: (202) 312-6050 (877) 874-8737 Fax: (202) 842-3023 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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