Many Phoenix households cut the cord and now use wireless phone service only, Qwest said. In an ex parte late Monday, Qwest filed a confidential Nielsen Mobile study that the Bell said showed high cut-the-cord levels as of March 31. Qwest seeks relief from loop and transport unbundling rules in Phoenix, Denver, Seattle and Minneapolis. The FCC didn’t count cut-the-cord wireless subscribers in a circulating draft order that would reject forbearance (CD July 17 p1). Commissioners must vote by Saturday under a statutory deadline, or the petition is deemed granted. Phoenix is seen as the most contested area in the forbearance request. The Nielsen study is flawed, and Qwest filed a report from the same author 15 months ago, said a spokesman for XO Communications. Telephia wrote the original study, but Nielsen bought the firm last year, he said. “Telephia’s 2-page study was unreliable -- lacking data on a meaningful methodology or any means to conduct an analysis of Telephia’s findings,” he said. “The same shortcomings apply to the new information.” XO also condemned the lateness of Qwest’s filing. “Qwest’s 11th-hour ex parte underscores the flaws in a forbearance process that permits petitioners to make late filings that prevent due process by opponents,” the spokesman said. The new study is different than the Telephia report, Steve Davis, Qwest public policy senior vice president, said in an interview. The filing marks the first time Qwest has obtained and filed with the FCC market-specific data on cut- the-cord subscribers, Davis said. Qwest previously only filed national data, because that’s all the FCC wanted in previous forbearance cases, he said. Qwest filed the study so late in the game because it was unaware the FCC wanted market-specific data until recently, he said. Qwest obtained and filed the study as “promptly as [it] could,” said Davis.
Broadband providers sounded alarms over an FCC proposal to create a national broadband mapping program. In comments last week, phone carriers and cable operators expressed concerns about costs and confidentiality. Wireless and satellite providers argued that they should escape any data filing requirements. But the FCC proposals -- made last month in a further notice attached to an order on broadband data collection - received strong support from the National Association of Telecommunications Officers & Advisors and the American Library Association.
A federal appeals court won’t stay an FCC order blocking Verizon from marketing to departing customers. Ruling Wednesday, the U.S. Appeals Court for the District of Columbia Circuit said only that Verizon didn’t satisfy “the stringent standards required for a stay pending court review.” But the court denied an FCC motion to strike the case, granting Verizon expedited consideration of its petition for review. Judges Judith Rogers and Merrick Garland supported denying the stay, with Judge Douglas Ginsburg dissenting.
Chairman Kevin Martin circulated a draft order denying a Qwest forbearance petition opposed by competitive local exchange carriers, agency and industry sources confirmed. The draft’s market-share test doesn’t count cut-the-cord wireless subscribers, we're told. Qwest seeks relief from loop and transport unbundling rules in Phoenix, Denver, Seattle and Minneapolis. Commissioners must vote by July 26 under a statutory deadline.
A comprehensive intercarrier-compensation revamp might not be possible by Nov. 5, FCC Commissioner Jonathan Adelstein said Wednesday at a Quebec, Canada, conference of the Organization for the Promotion and Advancement of Small Telecommunications Companies. Chairman Kevin Martin has promised a complete overhaul by then (CD July 14 p2). “I'm not sure we're really going to,” Adelstein said, predicting that the work may be broken up. If it is, the FCC should tackle phantom traffic, a “growing problem,” right away, he said.
The FCC needs a long-term overhaul policy for the Universal Service Fund, FCC Commissioner Deborah Tate told an OPASTCO conference Monday in Quebec, Canada. It’s “critical” that a revamp “strikes a balance between the costs of advancing our national telecommunications infrastructure and the costs consumers are willing to bear,” she said. The current USF surcharge on interstate calls is 11.4 percent, she said.
The FCC should overhaul its collection method for fees charged submarine cable systems this year, said nine submarine cable operators. Global Crossing and Tata Communications have endorsed a proposal to create a new regulatory category for submarine cable systems carved from the existing international bearer circuit category. Friday, the nine operators submitted a revised plan addressing “concerns raised on the record that smaller-capacity systems using older technologies could be disadvantaged by a per- system fee that does not account for the particular circumstances of such systems,” they said. Under the revised plan, small-capacity systems would pay half what new, higher- capacity systems pay, they said. The revisions clarify that a consortium-owned cable system should be treated as a single system when paying the new SCS fee, even if the FCC has issued multiple cable landing licenses for it. Payment responsibility would be divided among consortium members according to commercial agreements, they said. FCC commissioners are to vote on an item about regulatory fee assessment at the Aug. 1 meeting (CD June 14 p2). The submarine cable group believes the FCC has enough information to adopt the group’s proposal Aug. 1, said an industry official close to the proceeding. The submarine cable group recently met with legal aides to Commissioners Kevin Martin, Robert McDowell and Deborah Tate, and has meetings scheduled this week with Jonathan Adelstein and Michael Copps, the official said. More carriers have said they soon will embrace the proposal, which may undergo further revision to broaden its scope, the official said. AT&T, Verizon and Qwest oppose the proposal, which they say would give submarine cable operators an unfair regulatory advantage (CD June 10 p11).
Extend AT&T accounting-rule forbearance to all price-cap carriers, urged Windstream, joining Embarq and Frontier Communications in a Wednesday meeting with the Wireline Bureau. Embarq initially made the request in comments last month (CD June 30 p2) on whether to extend forbearance to Qwest and Verizon. The carriers want relief from cost- assignment rules requiring incumbent carriers to keep records that, among other tasks, separate interstate and intrastate costs. If the FCC extends forbearance to the Bells, it likely will apply it to smaller price-cap carriers as well, said a lawyer close to the proceeding. None of the carriers has filed formal forbearance petitions, but Section 403 of the Communications Act authorizes the FCC to act on its own motion, he said. Forbearance foes say Qwest, Verizon and other carriers shouldn’t get relief because, unlike AT&T, they are rate-of-return regulated at the state level. That logic is unlikely to sway the FCC, which probably will focus on the federal level, the lawyer said. The FCC likely will answer the Qwest-Verizon request before addressing a reconsideration petition by Sprint Nextel, competitive local exchange carriers and others challenging the AT&T order, the lawyer said. The FCC usually makes ILEC requests a priority, he said. The FCC should act on the reconsideration petition first, a Sprint spokesman said. Extending forbearance to other carriers will only “compound” the FCC’s mistake in granting AT&T’s petition, he said. Sprint is focused on the reconsideration petition and so far doesn’t plan to go to court, as the National Association of State Utility Consumer Advocates has, he said. The AT&T order doesn’t take effect until the Wireline Bureau approves a compliance plan explaining how the Bell will continue maintaining accounting information that the FCC might request in the future. AT&T is expected to file the plan soon, the lawyer said.
A federal appeals court threw an interconnection dispute between Qwest and Western Radio Services back to district court Wednesday. Western disputes a Qwest interconnection agreement written by the Bell after the companies went through arbitration at the Oregon Public Utilities Commission. Western alleged that Qwest failed to negotiate in good faith, as required by the Telecom Act, and that the PUC violated Western’s constitutional rights. A U.S. District Court in Portland, Ore., dismissed the charge against Qwest for lack of jurisdiction and the one against the PUC as unripe for decision. Western appealed to the 9th U.S. Appeals Court in San Francisco. The 9th Circuit vacated and remanded. Western couldn’t sue Qwest alleging bad faith before the PUC handled the charges, the appeals court agreed. But the commission may have done that when, shortly after the district court ruling, it approved the interconnection agreement filed by Qwest, it said. The lower court should consider whether the PUC decision is “sufficient to permit adjudication of Western’s good faith claim in district court,” the 9th Circuit said. The district court should also review whether the commission ruling affects its decision on Western’s charge against the PUC, it said. Qwest and Western Radio Services didn’t comment by our deadline.
The FCC has until Nov. 5 to explain the statutory basis for a nine-year-old interim compensation scheme for ISP-bound traffic, the U.S. Appeals Court for the District of Columbia Circuit ruled Tuesday. It granted Core Communications’ petition for writ of mandamus. A promise by FCC Chairman Kevin Martin that the agency would wrap up a comprehensive intercarrier-compensation overhaul by that date (CD May 6 p1) held no water for the court. “We have heard this refrain before,” it said. “Having repeatedly, and mistakenly, put our faith in the Commission, we will not do so again.”